Lembaga Penyelidikan Ekonomi dan Masyarakat – Fakultas Ekonomi dan Bisnis – Universitas Indonesia

Listen to Your Wife When It Comes to Saving Decision: Women’s Bargaining Power and Household’s Saving Outcome in Indonesia

Oktober 26, 2020

Abstract

Despite many advantages of women’s higher role 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 ?nancial outcomes such as saving in the household. In the era of the COVID-19 pandemic, where one could lose their source of income easily due to social restriction, 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 provide more resilience society toward the pandemic situation.

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