Work detail

Life Cycle and Asset Poverty

Author: Bc. Petra Lancuchová,
Year: 2017 - summer
Leaders: Tomáš Želinský PhD.
Consultants:
Work type: Bachelors
Language: Czech
Pages: 81
Awards and prizes:
Link:
Abstract: Poverty is generally defined as a lack of income to meet basic needs. The economic conditions
of a household depend except from income also on assets of a household, and so on its real and
financial asset holdings. The core of this thesis is to explore how asset holdings influence
poverty over the life cycle. In last years, plenty of papers concerning this topic have been
published and results of them are similar. This thesis builds on previous researches, but several
modifications have been made. In our empirical research, we use the data gained from the
Slovak HFCS survey conducted in 2014 to investigate how the asset position of individual or
household evolves throughout the life. Besides ordinary least squares method that focuses on
the impact of age for the average value of assets, we adopted the method of quantile regression
to reveal the differences of age influence on different values of assets. By estimating five
models in four variations we discovered that age is not always relevant when determining the
values of household assets. The result indicate that age is of importance only from the certain
age level. It was also found out that asset position of retired people is better than the asset
position of younger people in cases where age significantly affects the given forms of assets.

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