UNVEILING THE DRIVERS OF SAVING BEHAVIOR: INSIGHTS FROM DIRE DAWA CITY ADMINISTRATION

DOI: https://doie.org/10.0924/Nerj.2024566130

Habtamu Ditta Hirpo, Dr. AashkaThakkar, Dr. Rinki Mishra, Dr. Yagnesh Dalwadi

Keywords:

Determinants, Public employees, saving behavior

Abstract:

In today's world, everyone is striving to secure the future, and saving plays a crucial role in the development of an individual's life. This paper explores the factors that influence the saving behavior of public sector employees. The purpose of this study is to investigate the potential determinants of saving behavior among public sector employees to improve their life status. A mixed research design was applied to examine the causal relationship between saving behavior and its determinants. A multi-stage random sampling technique was used to select respondents. Structured questionnaires, written in both English and Amharic, were distributed to various levels of public sector employees working in the Dire Dawa city administration. Data was collected from 331 employees through direct distribution at their workplaces.

Qualitative data was analyzed through narration, while quantitative data was analyzed using frequencies, percentages, tabular presentations, graphs, and other descriptive techniques. A binary logit model was applied to analyze the determinants of saving behavior among the respondents. The results revealed that 60.12% of the respondents do not save, while the remaining 39.88% are engaged in saving activities. Key determinants of saving behavior identified include income, commitment, mass media advertisement, consumption expenditure, political instability, incentives, and access to finance. Notably, commitment and consumption expenditure were found to negatively and significantly influence saving behavior. However, addiction was found to have no statistically significant impact on the saving decisions of public employees.

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