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The division of household income between consumption and savings is an important economic decision affecting the country’s economy. Today, being dynamic of consumers preference of consumers at choice’s and the changes that may ocur in socio-economic factors significantly affect the consumption and saving decision, creating significant externalities on the country’s economy. The preferences of households between consumption and saving and the factors affecting these behaviors give different results for different income groups. The purpose of the study, Turkey Statistical Institute(TSI)’s made clear in his period 2003-2013 Household Budget Survey(HBS) using the data set is to investigate the household savings tendency in Turkey. Quantil Regression technique was used as an econometric method, the tendency to save for low, middle and high income household was analyzed over different quantile and it was observed that differentnparameter results had different effects for each quantile estimation. According to the econometric analysis results, when variables such as the wealth factor were examined, it was observed that families with higher education who had health insurance were families with no prudential concern and pozitive saving was not seen for those in this group, while families with subsistence level and families with no security fort he future had a positive tendency to saveing prudent purpose. Another remarkable a feature was found in the age variable. Individuals continue to make savings in their old age, either out of precautionary concern nor with the motive of inheritance. [ABSTRACT FROM AUTHOR]

This paper analyses the Household Budget Surveys prepared by the Turkish Statistical Institute to reveal the empirical importance of precautionary saving in Turkey. The most difficult aspect of the empirical analysis is the approximation of labour income risk as a proxy variable for future labour income uncertainty. Individual disposable income is interacted alternately with the probability of being unemployed and with the probability of job loss in the next period to generate the labour income risk variables. The econometric results support the precautionary saving hypothesis and labour income risk emerges as one of the main determinants of household saving decisions. Moreover, households implement alternative strategies to smooth out their income streams such as holding a second job and increasing the number of income earners in the family. However, it is evident that they are still vulnerable against labour income risk, which underlines the need for an effective and efficient social security system. [ABSTRACT FROM AUTHOR]