The behavior of household finance on demographic characteristics in Pakistan

Figures & data

Table 1. Variable definitions.

Variables	Definition
Dependent variables
Savings	1 if a household has net savings in 2015/16, 0 otherwise
Risky assets	1 if a household has invested in shares/ bonds or other securities, 0 otherwise
Borrowings	1 if a household has borrowed from a bank, 0 otherwise
Independent variables
Household size	Number of people residing in the household
Education: illiterate	1 if a household is illiterate, 0 otherwise
Education: primary	1 if a household obtained a primary education, 0 otherwise
Education: secondary	1 if a household obtained a secondary education, 0 otherwise
Education: tertiary	1 if a household obtained tertiary education, 0 otherwise
Male	1 if a household head is male, 0 otherwise
Age	Age of household head (in years)
Married	1 if a household head is married, 0 otherwise
Household income	Household income of head (Rupees)
Own house	1 if a household is living in their own house, 0 otherwise
Urban	1 if a household is located in an urban area, 0 otherwise
Occupation: agriculture	1 if a household head occupation is in the agriculture industry, 0 otherwise
Occupation: waged	1 if a household head is a salaried person, 0 otherwise
Occupation: self-employed	1 if a household head is self-employed, 0 otherwise
Province: KPK	1 if a household head is located in Khyber Pakhtunkhwa province, 0 otherwise
Province: Punjab	1 if a household head is located in Punjab province, 0 otherwise
Province: Sindh	1 if a household head is located in Sindh province, 0 otherwise
Province: Balochistan	1 if a household head is located in Balochistan province, 0 otherwise

This table presents a description of the variables used in this study.

Source: Authors' calculations.

Table 2. Summary statistics.

	N	Mean	Median	SD	Min.	Max.
Savings	2,608	0.603	1	0.489	0	1
Risky assets	2,415	0.074	0	0	0	1
Borrowings	2,448	0.109	0	0	0	1
Household size	2,608	6.164	6	2.383	1	14
Education: illiterate	443	0.170	0	0.376	0	1
Education: primary	902	0.346	0	0.476	0	1
Education: secondary	833	0.319	0	0.466	0	1
Education: tertiary	435	0.167	0	0.373	0	1
Male	2,608	0.855	1	0.258	0	1
Age	2,608	44.046	44	12.144	15	73
Married	2,608	0.969	1	0.175	0	1
lnHousehold income	2,608	12.553	12.539	0.625	9.465	14.306
Own house	2,608	0.784	1	0.412	0	1
Urban	2,608	0.502	1	0.500	0	1
Occuption: agriculture	645	0.247	0	0	0	1
Occuption: waged	1,374	0.527	1	0	0	1
Occuption: self employed	589	0.226	0	0	0	1
Province: KPK	535	0.205	0	0.404	0	1
Province: Punjab	945	0.362	0	0.481	0	1
Province: Sindh	822	0.315	0	0.465	0	1
Province: Balochistan	306	0.117	0	0.481	0	1

This table presents summary statistics of the variables used in this study.

Source: Authors' calculations.

Table 3. Demographic characteristics and household finance.

	Savings			Risky Assets			Borrowings
	Coeff.	t-value		Coeff.	t-value		Coeff.	t-value
Household size	–0.1144	–10.06***		–0.0053	–0.31		0.0314	2.05**
Education: primary	0.1093	1.46		0.0916	0.76		–0.0061	–0.06
Education: secondary	0.1735	2.28**		0.0981	0.80		–0.1488	–1.41
Education: tertiary	0.1450	1.66*		0.2366	1.76*		–0.0661	–0.55
Male	0.2410	2.33**		–0.0399	−0.25		0.0596	0.43
Age	0.0059	0.40		–0.0262	−1.19		0.0186	0.88
Age-squared	–0.0001	−0.58		0.0003	1.28		–0.0002	–1.03
Married	0.1447	0.94		0.2921	1.09		–0.1267	–0.62
lnHousehold income	0.0408	0.95*		0.0424	0.65		0.0267	0.45
Own house	0.3153	1.04		0.3938	0.80		–0.1231	–0.33
Urban	0.2475	4.41***		0.1503	2.04**		–0.1492	−1.97**
Occuption: agriculture	0.0972	1.28		–0.1424	−1.22		–0.0670	–0.62
Occuption: waged	0.1135	1.78*		–0.0749	−0.79		0.0230	0.27
Province: KPK	0.1811	2.38*		0.3438	2.91***		0.4223	4.24***
Province: Sindh	0.1121	1.58		0.0674	0.59		–0.1832	−1.73*
Province: Balochistan	0.0925	1.05		0.5178	4.17***		0.6840	6.57***
Constant	1.2159	1.72*		–1.2345	−1.13		–1.2995	–1.35
Number of obs	2,608			2,415			2,448
Log (pseudo) likelihood	–1680.41			–620.98			–790.75
Pseudo R-squared	0.0410			0.0292			0.0649
Probability > χ^2	0.0000			0.0031			0.0000

Note. ***, **, and * show significant at 1, 5, and 10% level. For household education, the base category is ‘illiterate’; for occupation, the base category is ‘self-employed’; and for province-wise location, the base category is ‘Punjab’.

Source: Authors' calculations.

Table 4. Demographics and household finance controlling the household size.

	Small-sized households			Large-sized households
	Savings	Risky assets	Borrowings	Savings	Risky assets	Borrowings
Education: primary	0.0787 (0.72)	0.0502 (0.30)	0.2453* (1.67)	0.1467 (1.34)	0.1456 (0.82)	–0.2374* (–1.66)
Education: secondary	0.0584 (0.53)	0.1660 (1.02)	0.0089 (0.06)	0.2477** (2.20)	–0.0316 (–0.17)	–0.2579* (–1.73)
Education: tertiary	0.0248 (0.19)	0.1722 (0.90)	0.0946 (0.52)	0.1670 (1.35)	0.2645 (1.36)	–0.1821 (–1.11)
Male	0.0981 (0.78)	0.0184 (0.09)	0.0923 (0.53)	0.1819 (0.90)	–0.3408 (–1.24)	–0.1499 (–0.58)
Age	0.0074 (0.33)	–0.0032 (–0.10)	0.0039 (0.12)	0.0026 (0.13)	–0.0350 (–1.13)	0.0326 (1.10)
Age–squared	–0.0002 (–0.65)	0.0001 (0.36)	–0.0001 (–0.31)	–0.0001 (–0.32)	0.0004 (1.06)	–0.0003 (–1.11)
Married	0.1837 (0.86)	–0.1221 (–0.39)	0.1414 (0.47)	–0.0153 (–0.06)	0.1478 (0.65)	–0.3565 (–1.22)
Household income	0.0225 (0.36)	0.0002 (0.00)	0.0492 (0.58)	0.0946 (1.51)	0.1073 (1.08)	0.0145 (0.17)
Own house	–0.2131 (–1.30)	0.2002 (0.85)	0.0606 (0.35)	0.0139 (0.12)	0.0808 (0.29)	0.0509 (0.30)
Urban	0.4265*** (4.97)	0.0641 (0.55)	0.2631** (2.32)	0.0870 (1.08)	–0.0132 (–0.10)	–0.0874 (–0.82)
Occuption: agriculture	0.0099 (0.09)	–0.1399 (–0.92)	0.0844 (0.56)	0.3635*** (3.13)	–0.1851 (–0.97)	–0.1935 (–1.23)
Occuption: waged	0.0755 (0.79)	–0.1685 (–1.28)	0.2518* (1.91)	0.2011** (2.22)	0.0240 (0.17)	–0.1871 (–1.59)
Province: KPK	−0.0618 (–0.55)	0.4087** (2.35)	0.7531 (5.11)	0.0828 (0.78)	0.2799* (1.68)	0.2050 (1.48)
Province: Sindh	0.6857*** (6.75)	0.2399 (1.56)	–0.1277 (–0.85)	–0.5041*** (–4.74)	–0.1146 (–0.64)	–0.2413 (–1.58)
Province: Balochistan	1.0706*** (7.06)	0.6649 (3.97)	0.8288*** (5.67)	−0.7954*** (–6.10)	0.3679* (1.92)	0.5540*** (3.61)
Constant	0.5895 (0.64)	–1.8992 (–1.43)	–1.5841 (–1.24)	1.0103 (1.07)	0.6097 (0.42)	–1.0308 (–0.80)
Number of obs	1,404	1,302	1,331	1,204	1,082	1,117
Log (pseudo) likelihood	–780.87	–335.66	–389.35	–796.00	–279.43	–390.94
Pseudo R-squared	0.1118	0.0346	0.0997	0.0458	0.0372	0.0506
Probability > χ^2	0.0000	0.0000	0.0000	0.0000	0.0000	0.0000

***, **, and * show significance at 1, 5, and 10% level. t-stats are reported in parenthesis. For household education, the base category is ‘illiterate’; for occupation, the base category is ‘self-employed’; and for province-wise location, the base category is ‘Punjab’.

Source: Authors' calculations.

Table 5. Demographics and household finance controlling household age.

	Young household (≤44 years)			Mature household (>44 years)
	Savings	Risky assets	Borrowings	Savings	Risky assets	Borrowings
Household size	–0.1323*** (–7.91)	–0.0157 (–0.62)	0.0361 (1.60)	–0.0965*** (–6.13)	0.0084 (0.36)	0.0226 (1.06)
Education: primary	0.1159 (1.07)	0.0636 (0.37)	0.0065 (0.05)	0.1267 (1.20)	0.1289 (0.74)	–0.0241 (–0.17)
Education: secondary	0.2166** (2.00)	0.0229 (0.13)	–0.1547** (–1.03)	0.1453 (1.35)	0.1752 (1.00)	–0.1472 (–0.97)
Education: tertiary	0.0639 (0.51)	0.2721 (1.43)	–0.0244 (–0.14)	0.2343* (1.91)	0.2308 (1.20)	–0.1244 (–0.72)
Male	0.3238** (2.41)	0.1264 (0.58)	–0.1992 (–1.13)	0.0915 (0.55)	–0.2158 (–0.91)	0.1122 (0.47)
Married	0.1373 (0.87)	0.1333 (0.51)	0.0139 (0.06)	0.4917 (1.20)	–0.1932 (–0.60)	–0.7333 (–1.56)
lnIncome	0.0473 (0.79)	0.0181 (0.20)	–0.0474 (–0.57)	0.0208 (0.34)	0.1168 (1.25)	–0.0055 (–0.07)
Own house	0.0586 (0.30)	0.3033 (0.87)	–0.0992 (–0.34)	0.3429* (1.74)	0.5736** (2.12)	–0.0003 (–0.00)
Urban	–0.1507* (–1.86)	–0.1261 (–1.01)	–0.2308** (–2.13)	0.3553*** (4.53)	0.2204* (1.86)	0.0774 (0.73)
Occuption: agriculture	0.1370 (1.26)	–0.0325 (–0.19)	0.0643 (0.42)	0.0439 (0.41)	–0.2281 (–1.41)	–0.2254 (–1.45)
Occuption: waged	0.1540* (1.69)	–0.0273 (–0.20)	0.0749 (0.59)	0.0633 (0.71)	–0.1425 (–1.09)	–0.0280 (–0.24)
Province: KPK	0.3013*** (2.68)	0.6183*** (3.39)	0.4593*** (3.02)	0.0589 (0.56)	0.1390 (0.86)	0.4013*** (2.96)
Province: Sindh	0.1631* (1.65)	0.1814 (1.04)	–0.0954 (–0.66)	0.0789 (0.79)	0.0539 (0.34)	–0.2621 (–0.24)
Province: Balochistan	0.1650 (1.31)	0.6924*** (3.68)	0.8087*** (5.47)	0.0392 (0.32)	0.3915** (2.27)	0.5795*** (3.87)
Constant	0.9206 (1.12)	–2.4531* (–1.90)	–0.9180 (–0.80)	0.8416 (0.91)	0.6973 (0.55)	–0.7350*** (–0.58)
Number of obs	1,285	1,198	1,202	1,323	1,217	1,246
Log (pseudo) likelihood	–815.00	–292.62	–389.15	–858.60	–321.11	–398.78
Pseudo R-squared	0.0485	0.0462	0.0785	0.0406	0.0299	0.0577
Probability > χ^2	0.0000	0.0000	0.0000	0.0000	0.1375	0.0000

***, **, and * show significant at 1, 5, and 10% level. t-stats are reported in parenthesis. For household education, the base category is ‘illiterate’; for occupation, the base category is ‘self-employed’; and for province-wise location, the base category is ‘Punjab’.

Source: Authors' calculations.

Table 6. Demographics and household finance controlling household income.

	Low household income			High household income
	Savings	Risky assets	Borrowings	Savings	Risky assets	Borrowings
Household size	–0.1234*** (–7.71)	0.0062 (0.26)	0.0057 (0.27)	–0.1009*** (–6.17)	–0.0204 (–0.84)	0.0581*** (2.60)
Education: primary	–0.0024 (–0.02)	0.2515 (1.39)	–0.1717 (–1.17)	0.2185** (2.19)	–0.0221 (–0.13)	0.1495 (1.06)
Education: secondary	0.1333 (1.20)	0.1435 (0.77)	–0.1688 (–1.13)	0.2090** (1.99)	0.0635 (0.38)	–0.1317 (–0.87)
Education: tertiary	0.0551 (0.43)	0.3760* (1.86)	–0.1121 (–0.65)	–0.1009* (–1.95)	0.1325 (0.71)	–0.0421 (–0.25)
Male	0.2822* (1.91)	–0.1409 (–0.64)	–0.1004 (–0.52)	0.1743 (1.22)	0.1427 (0.62)	–0.0563 (–0.28)
Age	0.0148 (0.74)	–0.0284 (–0.93)	0.0290 (0.97)	–0.0074 (–0.34)	–0.0321 (–0.98)	0.0103 (0.34)
Age-squared	–0.0001 (–0.75)	0.0003 (1.01)	–0.0003 (–0.99)	0.0000 (0.08)	0.0004 (1.02)	–0.0002 (–0.51)
Married	0.0641 (0.26)	0.5303 (1.10)	–0.2416 (–0.72)	0.2095 (1.06)	0.2181 (0.65)	–0.0772 (–0.29)
Own house	–0.0235 (–0.17)	–0.1086 (–0.42)	0.0833 (0.32)	–0.0692 (–0.38)	0.0638 (0.29)	0.0665 (0.27)
Urban	0.2596*** (3.30)	0.3032** (2.57)	0.0803 (0.75)	0.2248*** (2.75)	0.2655** (2.14)	–0.2411** (–2.15)
Occuption: agriculture	0.0363 (0.33)	–0.2414 (–1.38)	0.0606 (0.40)	0.1465 (1.38)	–0.0771 (–0.47)	–0.1974 (–1.27)
Occuption: waged	0.1271 (1.41)	–0.0336 (–0.25)	–0.1110 (–0.90)	0.0809 (0.89)	–0.1328 (–0.96)	0.1443 (1.16)
Province: KPK	0.1733 (1.55)	0.4122** (2.30)	0.5240*** (3.46)	0.1672 (1.58)	0.3370** (2.06)	0.3440** (2.52)
Province: Sindh	0.0693 (0.70)	0.1803 (1.09)	–0.1233 (–0.83)	0.1646 (1.58)	–0.0147 (–0.09)	–0.1997 (–1.26)
Province: Balochistan	0.0545 (0.40)	0.6599*** (3.46)	0.7280*** (4.40)	0.1253 (1.07)	0.3689** (2.18)	0.6685*** (4.85)
Constant	0.3900 (0.78)	–1.7606** (–2.17)	–1.7225** (–2.35)	1.5831 (1.17)	–0.9978 (–1.32)	–1.9431*** (–2.66)
Number of obs	1,305	1,215	1,229	1,303	1,200	1,219
Log (pseudo) likelihood	–825.98	–307.77	–381.89	–850.59	–305.77	–400.43
Pseudo R-squared	0.0442	0.0482	0.0650	0.0396	0.0281	0.0830
Probability > χ^2	0.0000	0.0084	0.0000	0.0000	0.2799	0.0000

***, **, and * show significant at 1, 5, and 10% level. t-stats are reported in parenthesis. For household education, the base category is ‘illiterate’; for occupation, the base category is ‘self-employed’; and for province-wise location, the base category is ‘Punjab’.

Source: Authors' calculations.