Income volatility and saving of Polish households during financial crisis

In this paper we examine the volatility of income of Polish households and the effect of income volatility on household saving. We use data on income earned by household members and on household expenditures from four samples of Polish households for 2007-2010 in groups of employees, self-employed and pensioners (more than 30 thousand of households each year). We estimate the quantile regression models for household saving rates for .25, median and .75 quantiles. Our results show that income volatility affects positively and significantly the household saving rates in Poland in 2007-2010.

Keywords: income, volatility, quantile, household, saving, Poland