Will Bride Price Affect Household Savings: Evidence from Rural China

Abstract

Does the increasing bride price affect household savings behaviour? This study investigates the relationship and the mechanism between the increase in the bride price and rural household savings behaviour using data from the China Labour-force Dynamics Survey (CLDS). The findings reveal that the bride price has a significant positive effect on rural household savings. Rooted in the traditional view of ‘raising a child to provide for the aged’, the paper identifies the bride price endowed with dual attributes, consumption and investment, as potential pathways through which the bride price stimulates household savings potential. Furthermore, the positive effect of a high bride price on rural household savings is stronger among families with fewer children.