Household Savings Trap the Poorest, Widen Poverty Gap
Household saving has a big impact on poverty, especially for the poorest families. The difference between what households earn and what they spend is important to understand poverty better. By looking at how households save money, researchers found that the poorest families who rely on selling their assets are affected the most. When the price of saving goes down, it can make things harder for these families. The price of saving affects poor and rich families differently, which can make the poverty gap bigger or smaller.