How do Savings Differ Among Various Earner Groups in Pakistan? Empirical Evidence from Multan District

Saving and Investment are two main macroeconomic variables that are helpful in price stability and promotion of employment for the under developed country like Pakistan. The purpose of our study is to answer the question that how labor class, job holders', business class and farmers' class of Pakistan decide about saving in their daily life. To explore the dynamics of decision about saving, authors have brought together sample of 376 respondents from rural and urban areas of district Multan using stratified random sampling technique. The study follows and proves life cycle hypothesis that is visible with positive sign of Age of respondent and negative sign of age square for all earner groups. The study concludes that children's educational expenditures, family size and liabilities to be paid by household head are reducing factors for savings of labor class while value of assets and income of household are features those are inducing labor class savings significantly. On the other side, job holder households are likely to save more in response of Spouse participation, total income of household and value of all physical assets. Children's educational expenditures, liabilities to be paid by household head and marital status are the aspects those are inversely associated with job holders' saving. Business class savings rise in response of only income and fall due to education, children's educational expenditure, liabilities and marital status. There is positive contribution of spouse participation, total income and value of assets with farmers' class savings. On the other hand, farmers' class can save less due to their education, children's educational expenditure, family size, liabilities, marital status and region of residence. It is also suggested that Govt. should pay more attention towards free education and also towards industrialdevelopment of Pakistan