Comparative Saving Behavior of Rural and Urban Households in the Philippines

Marginal saving rates for the Philippine households are estimated, distinguishing between rural and urban households, by region and by income group. At a given income level, rural households generally save more than urban households, both on average and at the margin. This contrasts with the higher average saving rates for urban households in the various regions, attributable to their higher incomes. The estimated marginal saving rates for rural households in many regions are found to be higher than their urban counterparts. In the context of agriculture-based development, faster growth of rural incomes need not result in lower aggregate savings.