Distinction for Karolina Kuklińska in the Polish Economic Society Competition | Faculty of Management and Economics at the Gdańsk University of Technology

What was your thesis about?

Karolina Kuklińska: For my master's thesis, I chose a topic related to economics and household behavior, focusing on the analysis of household wealth and saving behaviors across European countries. The study aimed to identify the factors that most significantly influence the saving behaviors of households in Poland, Germany, and Italy, and to observe the relationships between selected determinants and the value of savings accounts in the countries analyzed. I conducted a comparative analysis using data from the European Central Bank, which conducts the Household Finance and Consumption Survey (HFCS) every few years. I decided to work with this database because it gathers information at the household level about their finances and consumption, characterized by detailed data on various aspects of household balances, income, consumption, and related economic and demographic variables, allowing for an in-depth assessment of wealth issues and consistent comparisons between countries, which is particularly important.

I obtained the data directly from the European Central Bank with the help of my supervisor, who is well-connected in economic circles, not just in Europe. I performed the analysis using STATA, where I examined the factors that potentially determine the saving behaviors of households. To demonstrate the results of the empirical study, I chose the Linear Probability Model (LPM) and Ordinary Least Squares (OLS) regression. Additionally, I conducted a robustness check using a probit model.

Why is the topic you chose important?

Saving is one of the fundamental economic concepts, especially as household savings are an integral part of national savings, as they enable the proper functioning of the entire market. During the current economic crisis caused by recent global events, such as the coronavirus pandemic followed by the war in Ukraine, which led to rising prices on global markets, inflation, and interest rates, saving has become a duty rather than a personal preference. Saving has ceased to be merely a way of accumulating wealth to enhance the well-being of households. Events over the past two years have raised our awareness of the importance of saving and securing ourselves for worse times, so-called rainy days. Therefore, I believe that the research topic I undertook is very timely. Considering the importance of this topic, understanding the mechanisms behind household saving behaviors is key.

More personally — as someone not yet fully aware of my finances and saving techniques, I wanted to analyze and see what the situation with saving looks like in households in different countries. After conducting private (internal) research among my friends and family, I realized it would be an interesting experiment on an international scale. I wanted to see if and what determinants influence the values, motives, and culture of saving in three quite different European countries and in which age and asset groups these values are highest/lowest. Additionally, after consulting with my supervisor, we concluded that at the moment, there is no published work on such a topic, using these data and specific technical methodology. This motivated me to perform the analysis as accurately as possible and write a very good paper. Those interested are invited to contact me regarding access to my work or constructive debate on its topic.

How do you recall working with your supervisor?

I have very fond memories of my collaboration with Dr. Piotr Paradowski. We spent long hours debating topics related to saving, household wealth, the analysis of the HFCS survey, and the STATA program (over which I spent long hours making sure I was using the correct code). Dr. Piotr is incredibly committed, extremely helpful, and professional. He is also very meticulous about the substantive and stylistic correctness. I first contacted Dr. Paradowski during the second semester, during the Quantitative Analysis course, and I was already interested in the topic of analysis and household finances. After the course ended, I asked for further cooperation. I am very glad that I chose Dr. Piotr and that with his help I was able to write a very good paper. More than a year later, we still keep in touch. Thanks to this, in September 2023, my paper was presented at a poster session during the conference: Income and wealth inequality: drivers and consequences.

What are your professional and academic plans for the future?

After defending my thesis last year, significant changes occurred in my personal life; I moved to another country, to Copenhagen, where I am forging a new life path. Currently, I am working in a large international company and expanding my horizons in a new job market. In the near future, I would like to start working as a Business Analyst and engage in commercial data analysis for international corporations. After receiving the distinction in the competition, I began to think more about publishing my work in one of the economic journals, but I know I have a long way to go. In my future plans, I have the idea of pursuing doctoral studies at a university in Copenhagen or an MBA program. I do not plan to return to my home country in the coming years.