Institute for Research on Economics and Society – Faculty of Economics and Business – University of Indonesia

Listen to Your Wife When It Comes to Saving Decisions: Women's Bargaining Power and Household's Saving Outcomes in Indonesia

October 26th

Abstract

Despite the many advantages of women's higher roles in literature, GoI seems to lack commitment in addressing women
empowerment issues as their priority agenda. Having more empowered women in our society becomes more salient as several studies suggest that it will lead to better financial outcomes such as savings in the household. In the era of the COVID-19 pandemic, where one could lose their source of income easily due to social restrictions, having a society with a higher saving level is essential. By exploiting three waves (2000, 2007, 2014) of Indonesian Family Life Survey (IFLS) data and employing Fixed-Effect panel data analysis, this study found that a limited increase in the role of a wife in the household's ?nancial decision-making process will lead to a higher level of saving outcome, thus providing more resilience society toward the pandemic situation.

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