^aDepartment of Economics, Ohio University, 329 Bentley Annex, Athens, OH 45701, USA. E-mail: paxton@ohio.edu

Abstract

Analysis of 2,029 Mexican households reveals that the rural poor can and do save using multiple savings strategies. Female-headed households hold more liquid family consumption assets, such as small animals and grain, and invest more in their homes whereas male-headed households save more in financial and quasi-liquid assets. The family composition including the number of dependents is an important determinant of liquid and total assets. Male-headed households are more likely to increase liquid savings after shocks and utilize financial instruments such as credit and insurance to build assets. Age and remittances are strong determinants of savings in female-headed households.