The Influence Of Sex Ratio Change On Savings Rate

Since1980, the sex ratio of China has increased significantly. Some scholars pointed out that the high sex ratio of China is one reason for the high saving ratio of Chinese. However, Can sex ratio influence the saving rate worldwide? This is the question what I want to explore in this paper.There are two ways that the sex ratio may affect the saving rate. First, if the sex ratio deviates from balance, the group which takes big share has less probability to get married. So they will try to save more to increase their competitiveness in marriage market. Second, the economical behavior patterns between male and female are different. Female are more care about the long term financial condition of the family. And it is more difficulty for female to get a job and receive social insurance. What’s more, female have longer life expectation and more risk aversion than men. So in general, women have stronger motivation to save.The empirical analysis of the panel data of84countries verifies that the changes in the sex ratio will impact the savings rate in the world. When there are more women than men, the increase of sex ratio will lead to a rise of saving rate.The grouping tests also verify that the sex ratio can make influence on the saving rate within different areas and countries with different economics conditions. However, there is no significant influence when big social gap between female and male exists.In the conclusion part, I make some suggestion based on the result of empirical analysis. First, it is very essential to get a balance sex ratio in China, because that an unbalance ratio may bring bad effects on both social and economic aspects. What’s more, some policies should be adapted to create a gender equality society in China, which will benefit to the long term development.