Dissimilarities among Genders for Saving Habits in

the case of Ethiopian airlines Employees

A Senior Essay Submitted to Accounting & Finance Program Unit

For the Partial Fulfillment to the Requirement of BA Degree in
Accounting & Finance

Addis Ababa University

College of Business & Economics
School of commerce
Accounting & Finance Program Unit

Advisor: Tareke Ayalew( Ato)

By: Omgea Solomon

ID NO:-BER/0711/12

June 2023

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 ACKNOWLEGEMENT

First and for most I would like to give glory and praise to almighty god for
enabling me to complete the academic life. Next, I really appreciate my advisor
Mr Tareke for his valuable and prompt advice, his tolerance, guide and useful
criticism all through the course of preparing the paper, his constructive
correction and insightful comments, suggestion and encouragements are highly
appreciated. And my most profound gratefulness goes to Ethiopian airlines.
Last but not least I would like to thank all of respondents or employees for
taking portion of their valued time and giving useful information enabling this
research to be completed.

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 Abstract

The study focused on assessment of dissimilarities among genders for saving

habits in the case of Ethiopian airlines Employees. In Ethiopia currently, finance is
one of the most powerful tools for combating poverty and the good saving habits
of individuals are helpful on that issue. In addressing the mentioned issue basic
research question was designated to assess dissimilarities among genders for
saving habits in the case of Ethiopian airlines Employees. To fulfill the objective
of the study the researcher used primary source of data majorly. Primary data was
collected through preparation of open ended and close ended questions. The study
used convenient sampling technique to select samples. According to this study the
researcher selected 100 employees from more than 17,000 total population or
employees for the completion of questionnaires. Finally, the data was(were)
analyzed and interpreted by using percent, table and number and also possible
conclusion and recommendation was made.
Include the main conclusions here

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ABBREVIATIONS AND ACRONYM

ET Ethiopian Airlines
ASCAs Accumulating Savings and Credit Associations
MF Microfinance
MFIs Microfinance Institutions
NGO Non-Governmental Organization
RoSCAs Rotating Savings and Credit Associations
SHGs Self Help Groups
LCH Life Cycle Hypothesis
PIH Permanent Income Hypothesis
NBE National Bank of Ethiopia

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Table of Contents
CHAPTER ONE: INTRODUCTION.......................................................................1
1.1 Background of the study................................................................................................1

1.2 Background of the organization.................................................................................2

1.3 Statement of the problem...............................................................................................4

1.4 Objective of the Study...................................................................................................5

1.4.1 General Objective.................................................................................................5

1.4.2 Specific Objective.................................................................................................5

1.5 Limitation of the study...................................................................................................5

1.6 Significance of the study...............................................................................................5

CHAPTER TWO: LITERATURE REVIEW...........................................................6

2.1 Introduction to Saving...................................................................................................6

2.2. The importance of Saving.............................................................................................7

2.3. Theoretical Framework.................................................................................................8

2.3.1 Individual Perspective ……...........................................................................8

2.3.2 Sociological Perspective …….....................................................................11

2.3.3 Institutional Perspective ……......................................................................12

2.4. Empirical Review: Demographic, socio-economic & Institutional factors..................13

2.4.1 Age of Individual ……..................................................................................13

2.4.2 Gender of individual...........................................................................................13

2.4.3 Marital status......................................................................................................14

CHAPTER THREE:Research Metodology.............................................................14

3.1 Introduction...........................................................................................................14

3.2 The research design.....................................................................................................14

3..3 Research Approach.....................................................................................................15

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 3.4 Data sources and collection Tools...............................................................................15

3.5 Target Population.........................................................................................................16

3.6 Sampling technique and Sampling Size............................................................16

3.6.1 Sampling technique ……..............................................................................16

3.6.2 Sampling Size ……........................................................................................16

3.7 Work plan....................................................................................................................17

3.8 Budget..........................................................................................................................17

3.9 Source and types of data.........................................................................17

3.10 Method of Data Collection..................................................................... 17

3.11 Data Analysis and presentaton .....................................................................18

CHAPTER FOUR...................................................................................................18
4. DATA ANALYSIS AND INTERPRETATION.................................................18
4.1. Analysis of questionnaires..........................................................................................19

CHAPTER FIVE.....................................................................................................30
5. SUMMARY OF FINDING, CONCLUSION AND RECOMMENDATION………....……..30

5.1 SUMMARY OF FINDING.........................................................................................30

5.2 CONCLUSION............................................................................................................32

5.3 RECOMMENDATION...............................................................................................35

REFERENCES........................................................................................................36
APPENDEX ...........................................................................................................37

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 LIST OF TABLES

Table 1. distribution of respondents by gender

Table 2 .distribution of respondents by age

Table 3. Marital status of the respondent

Table 4.Educational status of the respondents

Table 5.Recruitment information about the employees of ET

Table 6. Saving trend of the respondents

Table 7. Capacity trend of the respondents

Table 8. Respondent’s response regarding having other source of income other

than monthly salary

Table 9. Respondent’s opinion if genders of employee affects saving habit

Table 10. The purpose of saving

Table 11. The challenges of clients to saving increase

Table 12. The suggestion of employees to improve saving habits

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 CHAPTER ONE
1. INTRODUCTION

1.1 Background of the Study

Saving is an important economic factor and saving habits play important role in the
economic system of developing economies. Many studies have been conducted to
measure the saving behaviors of individuals as well as the determinants of saving
of different economies. These studies have revealed that the economic welfare and
fiscal behavior of male and female differ meaningfully. Females have less income
as compare to males. Investigators and business experts have observed that women
invest huge where certainty of outcomes higher and have risk aversion behavior as
compare to males. As to much research has been conducted on gender
dissimilarities in earnings, variations in stock performance and capital, but very
little research is available as on what type of factors effecting the saving patterns of
both genders.

There are very few studies available to observe whether there are gender
differences in saving at the household level, in spite of saving as emerging issue in
respect to the security of households. Many differences have been observed about
the holding of wealth and investment portfolio decisions among male and females,
so it is essential and necessary to recognize these differences.

Factors inducing the saving patterns suggested the differences in welfare among
mature as well immature genders. This paper will broaden the works by examining
disparity in the saving habits of both genders. Factors considered for saving
patterns by different researchers in past will be linked to analyze the dissimilarities
in genders for these important factors. Huge gender disparity has been analyzed for

1
human welfare, in different economies. This study will be conducted to investigate
dissimilarities among genders for saving habits to comprehend that what type of
factors are responsible for different behavior of savings among males and females
in the developing economy of the country .

Most of the researchers have analyzed direct impact of higher income level on
saving habits. The study will also consider other factors that have impact on saving
habits of both genders. Saving behavior differ from country to country and from
area to area. People also have different saving patterns according to their province
and city in which they live. It is important to identify these dissimilarities among
genders in developing economies. Most of the studies conducted in developed
economies and the results of these studies cannot apply in developing economies.
There are many differences in terms of economic conditions, socialization,
political and religious factors etc. that affects directly to consumption as well as
saving habits. The aim of the study is also to identify those factors.

Savings is money put aside by an individual or household for use in the future. A
key to good money management, savings help individuals and households manage
risk, deal with emergencies, smooth income, build assets, and meet financial goals.
People save by putting money aside when it comes in and by spending less when it
goes out.
Based on the above background, the research study will focus on the assessment of
saving habit of both genders in the employees of Ethiopian airlines.

1.2 Statement of the Problem

Savings is the portion of income not spent on current expenditures. Because a
person does not know what will happen in the future, money should be saved to
pay for unexpected events or emergencies. Without savings, unexpected events can

2
become large financial burdens. Therefore, savings helps an individual or family
become financially secure. Money can also be saved to purchase expensive items
that are too costly to buy with monthly income. (Mubarak, 2006).

Attitude of the society towards consumption than saving is the most determinants
of poor saving habit. From demographic factors that affect saving habit include:
age, which implies that when household’s age increases their saving will decrease.
Gender, which implies that female households has better saving behaviors than
males. Education level, which revealed that as the academic level of households
increased their saving behavior, shows improvement. (Aron Hailesellasie, Nigus A,
and Genet B, 2013).

The research will try to fill the gap of the fact concerned institutions having no
sufficient understanding of the saving habit of the population by taking the
employees of Ethiopian airlines as an example which is one of the main factors
that affect the effort made to mobilizing massive saving and improve the living
standard of individuals. Understanding of factors influencing saving habit of
potential market is crucial for different financial institutions like microfinance
Institutions to formulate marketing strategies and delivery services. Therefore, the
purpose of this study is to assess the saving habit of the men and women
employees which might contribute in formulating different strategies to create a
good saving habit.

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 1.3 Objectives of the Study
1.3.1 General objective of the study
The main objective of this study is to assess saving habits in men and women
employees of Ethiopian airlines.

1.3.2 Specific objective of the study

The specific objectives of the research will be:
1. To evaluate the saving habit of men and women employees of Ethiopian
airlines.
2. To identify the reason that limits the men and women employees of Ethiopian
airlines to save
3. To find out the difficulties related to saving.

1.4 Limitation of the study

The study is conducted in a specific organization which is Ethiopian airlines. The
sample size is too small to take the results obtained to make generalization about
the saving behavior of the whole women and men population. And due to this
reason it is difficult to take the research as a theory.

1.5 Significance of the Study

The finding of the study shall help management of the airline and other related
financial organizations to better understand saving habit of both the women and
men employees of Ethiopian airlines. Findings of the study may also help different
organizations like financial institutions in modifying existing products or
developing new saving product.

Management of organizations might use findings of the study to formulate

appropriate marketing strategies that would contribute in achieving the goal of

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mobilizing massive saving. Other organizations that need to understand the saving
habit of medium and high income community might use output of the research.

1.6 Organization of the paper

This research paper has five parts. The first chapter is…

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 CHAPTER TWO
2. REVIEW OF RELATED LITERATURE
2.1. Introduction to Saving
Saving is defined as cash held back from day-to-day spending by an act of a will. It
transforms small cash flows into useful large lump sum. Savings are fundamental
to sustainable economic development. It is the most frequent source of funding for
microenterprise startup and expansion. Savings enable households to smooth
consumption in the face of uneven income flows, to accumulate assets for the
future, to invest in education, and to better prepare for emergencies. Despite the
importance of savings, the large majority of micro-savers continue to lack access to
safe and sound institutions where they can deposit their savings.

Saving can be made in cash or in-kind. Savings in cash at home has the advantage
of liquidity and accessibility, but as it stands chance of theft or being frittered
away, it is not the preferred mechanism. Savings in-kind is common because it
provides quick and higher returns, for example through the reproduction of
livestock. It is also used because of traditional social practices and the status
attached to assets such as land and jewelry. Nonetheless, savings in kind is most
prevalent among low-income people usually not by choice, but for want of a better
option. Saving with non-bank financial companies, Iqub, or rotating savings and
credit associations (RoSCAs), and accumulating savings and credit associations
(ASCAs) is a more common practice because of their wide outreach and simple
processes. Most people would prefer to save in a secure and accessible account in a
formal institution. Of the options available, banks and microfinance institutions are
preferred because of the security and discipline they provide. Nonetheless, formal
savings services present many hurdles. They are inaccessible because of the
limited outreach of the formal financial institutions. The products offered often do

6
not meet clients’ needs effectively, and they are delivered by staff members who
are not sensitive to the needs and expectations of low-income people.

The advantages and disadvantages of each mechanism affect the choice of savings
options among different economic categories: the rich, not so poor, and poor.
Understandably, the rich are the highest users of the formal institutions and the
poor the lowest. Institutions such as self-help groups (SHGs) and microfinance
institutions (MFIs) cater more to the poor and reach out to the lower segment of the
not-so-poor category.
Multiple informal mechanisms are used in parallel, mostly by the not so poor,
because they can diversify their risks and accumulate lump sums to meet some
planned need or to invest in some asset. The poor also often use the informal
mechanisms, but their most commonly used option is simply to hold cash savings
at home, which is mostly driven by lack of feasible alternatives.

2.2. The importance of saving

These are few reasons why we save:
· Emergency cushion: - This could be any number of things: a new roof for
your house, out of –pocket medical expense, or sudden loss of income.
· Retirement: - If you intend to retire someday, you will probably need
savings and /or investments to take the place of the income you’ll no longer
get from your job.
· Average life expectancy: - with more advanced in medicine and public
health, people are now living longer and needing more money to get by.
· Volatility of social security: - social security was never intended to be the
primary source of income and should be treated as a supplement to income.
· Education: - the costs for private and public education are rising every year
and its getting tougher to meet these demands. (Wolday A, 2008)
7
2.3. Theoretical Framework
Examining and explaining determinants of saving and asset building have attracted
attention from scholars across numerous disciplines. Economic theories put
primary emphasis on income and age as predictors of saving and asset
accumulation (Modigliani & Ando, 1957). Habital economists and economic
psychologists have recognized the role of self-control, motives, and other
personality characteristics on saving (Katona, 1975; Thaler & Shefrin, 1981;
Warneryd, 1999). Sociologists have been interested in how class and social
stratification influence saving and asset accumulation (D’Souza, 1981; Sorensen,
2000). Social workers have examined the effects of institutional factors such as
access, incentives, expectation, and facilitation in promoting saving (Beverly &
Sherraden, 1999; Sherraden, Schreiner, & Beverly, 2003). (Han and Sherraden
2009), classifies existing theories into three perspectives: 1) an individual-oriented
perspective; 2) a social stratification perspective; and 3) an institutional
perspective.

2.3.1 Individual Perspective

The individual perspective includes neoclassical economics, economic psychology,
and habital economics. Neoclassical economic theory assumes that individuals are
rational beings who respond in predictable ways to changes in incentives; and
assumes that individuals have perfect knowledge and access to perfect markets.
Two prominent neoclassical economic theories include: 1) the life cycle hypothesis
(LCH; Modigliani & Ando, 1957); and 2) the permanent income hypothesis (PIH;
Friedman, 1957). Both theories assume that individuals and households are
concerned about long-term consumption opportunities and therefore, explain
saving and consumption in terms of expected future income.

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The LCH posits that savings will be used to smooth consumption when income
varies by age. A main idea of the LCH is that working people are savers, whereas
children and retired people are not. Thus, differences in consumption and saving
among house- holds are attributed to age differences (Modigliani & Ando, 1957).
While people are working, they use their income to provide for the household
consumption, while at the same time they are saving to provide for their retirement.
On the other hand, the PIH suggests that savings decisions are based on income
being perceived as either permanent or temporary. Households mainly spend the
permanent income, while the temporary or transitory income is channeled into
savings; and households are freely able to save and borrow to smooth their
consumption (Friedman, 1957). Both economic theories view savings primarily as
a function of income. Aside from income, age, including the age of the head of
household and other household members, is an important predictor of saving,
according to neoclassical economic theories.

Although evidence suggests that neoclassical economic theories can predict

savings habit of households in developing countries, some researchers have argued
that the application of LCH and PIH to explain savings habits of low-income
households in developing countries can be problematic (Rosenzweig, 2001). For
instance, PIH’s assumption that households are freely able to save and borrow to
smooth their consumptions may not be true in developing countries where low-
income households have very limited access to a well-developed insurance and
credit market (Rosenzweig, 2001). In addition, distinction between permanent and
temporary income may not be evident in many parts of the developing countries
where household income is minimal and irregular.

9
Savings in low-income settings for long-term purposes, such as retirement, may
not be substantial given that many households struggle to meet subsistence
consumption level, especially in times of emergencies and other income shocks.

Unlike neoclassical economic theories, the other two individual perspectives on

savings in this study economic psychology and habitual economics do not assume
that people are rational and all-knowing. These two perspectives assume that
personality characteristics and attitudinal variables affect saving and asset
accumulation. The inclusion of psychological factors on savings research has been
the subject of investigations by early economic thinkers such as Jevons (1965),
Marshall (1961). Although, they recognized that savings depend on economic
factors, particularly income and its size and frequency, they also believe that there
are various psychological characteristics that influence the temptation to spend and
forego saving.

Although fewer psychologists have investigated psychological determinants of

saving habit than economists, there are some established psychological models on
savings habits, including those by (Katona, 1975), (Olander and Seipel, 1970), and
(Lindqvist, 1981). For instance, Katona’s theory of saving (1975) is partly
determined by income and partly by some independent intervening factors. Two
important factors are the ability to save (mostly objective data) and willingness to
save (a variety of psychological variables). Ability to save refers to those who can
save, whereas willingness to save is related to the degree of optimism or pessimism
of economic conditions (Katona, 1975). Thus, ability to save does not guarantee
savings because savings also depend on an individual’s willingness to save.

10
Habitual economics integrates insights from psychology and economics.
According to this perspective, common human characteristics such as self-control
and ability to delay gratification, mental accounting, use of rules-of-thumb, default
options, and hyperbolic discounting shape financial habits and economic decisions
(Kotana, Shefrin & Thaler, 1988). These characteristics can lead households to
behave in ways that are inconsistent with their own priorities. However, little is
known about the explanatory powers of these factors on savings habit of low-
income households in developing countries.

2.3.2 Sociological Perspective

Social stratification theory refers essentially to a distribution of power in society.
The divisions in society, based on economically conditioned power, are called
classes, which refer to any group of people that is found in the same economic
situation (Weber, 1967). Class and social stratification have strengths in explaining
the factors affecting savings habit among low-income households because class
relates to the possession (or lack) of resources (economic or otherwise) necessary
for individuals and households to save and build up their assets. Individuals and
families in lower economic classes have limited access to information, resources,
and services that can help them save and accumulate assets over time. When low-
income families have assets, they are less likely to have access to additional
resources that they can use to generate positive returns on the assets they already
own. The econometric approach to class and social stratification suggests that a
major explanation of class inequalities rests in the nature of access to, and take up
of, material resources, as well as the institutions that govern such access
(Crompton, 2008). In addition to control and possession of economic resources,
class and social stratification are powerful determinants of outcomes that can
further shape saving and asset accumulation patterns. Demand from social network

11
members, particularly family members, can make it difficult to save and
accumulate assets (Stack, 1974).

2.3.3. Institutional Perspective

Institutional theory posits that individuals and households are faced with
institutional level factors that make it impossible or difficult to save. The main
hypothesis of institutional theory assumes that low-income individuals and families
are unable to save and accumulate assets primarily because they do not have the
same institutional opportunities that higher-income individuals and households
receive (Beverly & Sherraden, 1999). Otherwise, given access to the same
institutional support for saving and asset building that their wealthier counterparts
use, low-income families can be in a position to save and accumulate assets.
Institutions in the institutional theory refer to “purposefully-created policies,
programs, products, and services that shape opportunities, constraints, and
consequences” (Beverly, Sherraden, Carmer, Williams & Zhan, 2008): p. 10).
Institutional theory hypothesizes that institutions affect world views, which in turn,
affect financial habits and decisions (Beverly & Sherraden, 1999).
Seven institutional level dimensions have been hypothesized to influence saving
and asset accumulation. These dimensions are access, information, incentives,
facilitation, expectations, restrictions, and security (Beverly & Sherraden, 1999;
Beverly et al., 2008).

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 2.4. Empirical Review: Demographic, socio-economic &
Institutional factors
2.4.1. Age of Individual
[The Life Cycle Hypothesis (LCH) posits that savings will be used to smooth
consumption when income varies by age. A main idea of the LCH is that working
people are savers, whereas children and retired people are not. Thus, differences in
consumption and saving among households are attributed to age differences
(Modigliani & Ando, 1957). While people are working, they use their income to
provide for the household consumption, while at the same time they are saving to
provide for their retirement.

Elderly people save or at least do not dis-save as much as predicted by the life-
cycle hypothesis (Deaton and Paxson, 1994 and Poterba, 1995), and consumers
appear to value bequests (Menchik and David, 1983). Some research studies such
as Bovenberg and Evant (1990) shows that the higher the old aged population in
the nation the lower is the saving rate in the economy. This study is inconsistent
with the study of Foley and Pyle (2005) which concluded that the young and elder
population saves more than the middle-aged population.

2.4.2 Gender of Individual

Results of prior empirical studies on effect of gender on households saving
performance are mixed. For instance, (Chowa, G. A. N. 2008), show that both
women and men are saving successfully. However, women are saving better than
their male counterparts across levels of education, marital status, and type of work.
On the other hand, a study conducted by (Wolday and Tekie 2014) indicates that
male headed households had significantly higher cash savings (about 2.2 times)
than female households. Empirical study in Philippines by Bersales & Mapa
(2006) shows that male households are better saver because the female has no
power to control income even their own income.

13
2.4.3 Marital status
The household marital status has been as a proxy for saving performance because
family value is important factor of savings. There are some empirical studies such
as (Sinha, 1998), which shows the family value plays an important role in the
saving habit of household and economic development. In their study, marriage is
important for saving performance since marriage is morally and socially
responsible for collective interest and it has important factor for financial planning.
The married households save more than singles due to their multiple source of
income (the income of the partners) and economies of scale with respect to basic
expenditure. The study of (Mosk, 2010) shows that widowed household save more
than married and unmarried household because they face unanticipated and extra
risk of life such as rearing children alone.

CHAPTER THREE
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 3. RESEARCH METHODOLOGY

3.1 Introduction
Korthari (2004) defined as research methodology as a science of studying how
research is done scientifically. This chapter describes in detail, how the study is
going to be carried out, what activities to be done, research design, research
approach, target population, sample size, sample method, source and types of data,
method of data collection and data analysis and presentation would be tending to
get from our research questions.

3.2 The Research Design

Research design is a blue print for selecting the sources and types of data related to
the research questions. It basically, provides answers for questions like what
techniques to be used to gather data and what kind of sampling to be applied
(Zikgmund et al., 2003).
There are three types of research design those are explorative, descriptive and
explanative. Explorative research is characterized as the looking for of new insight,
the looking around, and the asking of questions or the bringing of some
phenomenon into new light. Explanative research aims at gaining an explanation of
a specific situation or problem, generally in the form of causal relationships,
considering the cause and effect relationship between variables (Shields2013). The
last on is Descriptive research which is a type of research that is mainly concerned
with describing the nature or condition and the degree in detail of the present
situation (Robson. 2002), Descriptive method of research is used to gather
information about the present or existing condition Creswell (2003), Therefore,
this study will have applied descriptive research design.
3.3 Research Approach

15
The study will use mixed research approach i.e., both qualitative and quantitative
approaches. The reason for using quantitative approach is to answer how many
people are interested in saving. The reason for using qualitative approach is to
answer why peoples are interested in saving and the dissimilarities between men
and women employees of Ethiopian airlines regarding saving habit. So, both
quantitative and qualitative approach (mixed research approach) is used to
investigate about saving habit of women and men population.

3.4 Data Sources and Collection Tools

To achieve the objectives of the research, the researcher will use primary sources
and secondary sources as well. The data source of the study will be mainly the
primary data source that obtained through questionnaires and interview. In order to
get primary data both closed ended and open-ended questionnaires will be used.
Questionnaires will be prepared in English language.

3.5 Target population

The employees of Ethiopian airlines are selected for the study. Ideally the research
was to be made about the entire employees of Ethiopian airlines. However, due to
financial and time constraints it is impossible and unfeasible to do census therefore
sampling techniques will be applied to get the adequate amount of sample. Thus,
the proportionate samples will be taken from the employees and census will be
performed to collect the required data. Thus, for effective coverage, time
management and lower cost, only selected samples among the population will be
covered.

3.6. Sampling technique and Sampling Size

3.6.1. Sampling technique

16
In order to collect the desired data from employees the researcher uses

convenience sampling technique. Convenience sampling is a non-probability

sampling method where units are selected for inclusion in the sample because they

are the easiest for the researcher to access. This can be due to geographical

proximity, availability at a given time, or willingness to participate in the research.

Sometimes called accidental sampling, convenience sampling is a type of non-

random sampling.

The reason behind selecting this technique is to reduce time wastage and
transportation cost to get respondents. Moreover, it enabled the researchers to
freely select any respondents who is capable to react the questions.

3.6.2 Sample size

The research mainly focuses on the dissimilarities among genders for saving habits
in the case of Ethiopian airlines. This research mainly concerns on the men and
women employees of Ethiopian airlines. In order to keep the sample as
representing as possible individuals from different departments will be selected
and will be given the questionnaire to fill and will also be interviewed. So, as to
save time and cost very significant number of individuals will be used as a sample.
Which is around 100 employees will participate in the research. For this purpose
convenience sampling technique will be implemented.
3.7 Work plan
This research is planned to be made within the time limit of 3 months.
3.8 Budget
The need to allocate budget for research is for minor expenses like transportation
and stationery fees. The stationery fees might include copy and print fees which

17
are crucial for having adequate amount of questionnaires to distribute to target
population. Therefore taking this into consideration ETB 1,000 is budgeted for this
research to be made.

3.9 Source and types of data

The researcher mainly use primary source of data are collected using
questionnaires.. A primary source of data is an original data source, that is, one in
which the data are collected first hand by the researcher for a specific research
purpose or project. In this research the researcher get this source of data by the use
of questionnaires.

3.10. Method of Data Collection

To achieve the objective of the study, the researcher mainly use primary source of
data. Primary source data of was gathered from ET employees. In order to get
primary data both closed ended and open-ended questionnaires were used.
Questionnaires were prepared in English language and because the working
language in ET is English. The questionnaires were distributed to the respondent
when they came to the organization for doing their day to day activity.

3.11. Data Analysis and Presentation

The purpose of the study is to assess dissimilarities among genders for saving
habits in the case of Ethiopian airlines Employees. After the collection of all the
necessary data, the researcher analyzed the data by using descriptive data
analyzing tools such as percentages and tables, because this method enables the
researchers to obtain information about the preferences, attitude, awareness,
practice, concerts or interest of the respondents and analyze the data into a more
meaningful and easily understandable way.

18
 CHAPTER FOUR
4.1 Background of the organization
Better to rewrite in the following ways

 Year of Establishment
 Owner
 Main business activities
 Number of employees
 History of the Ethiopia Air line saving and credit association

The airline has been a member of the International Air Transport Association since
1959 and of the African Airlines Association (AFRAA) since 1968. Ethiopian is a
Star Alliance member, having joined in December 2011. The company slogan is
'The New Spirit of Africa.' Ethiopian's hub and headquarters are at Bole
International Airport in Addis Ababa, from where it serves a network of 125
passenger destinations—20 of them domestic—and 44 freighter destinations. The
airline has secondary hubs in Togo and Malawi. Ethiopian is Africa's largest airline
in terms of passengers carried, destinations served, fleet size, and revenue.
Ethiopian is also the world's fourth-largest airline by the number of countries
served.

Despite its humble beginnings, Ethiopian Airlines (Ethiopian) has had more than
75 years of successful journey which made it the leading Aviation Group in Africa.
Of course, Ethiopian is ageing beautifully. Over the decades, the airline has
established itself as the leader in all facets of the aviation business: technology
leadership, network expansion and aviation mentoring. Ethiopian started its
operation with five C-47 aircrafts back in 1946 and made its debut fight to Cairo
via Asmara. Ever since, it has been growing in leaps and bounds, and continued to
introduce cutting-edge aviation technology and systems. As aviation technology
leader, Ethiopian was a pioneer in ushering in new aviation technology into Africa
including the first jet airplane as well as the first B767, B777-200LR, B787
Dreamliner, and787-9 in the continent. Ethiopian also led the way in operating
Africa’s first Airbus A350 XWB. Currently, the airline has a fleet of more than
146 modern aircraft with average fleet age of five years; it also has 32 ultramodern
aircraft on order. Living its motto of Bringing Africa Together and Beyond,

19
Ethiopian has created Africa-wide and transcontinental air connectivity networks
linking its main hub Addis Ababa to the rest of the world. The airline serves 133
international passenger and cargo destinations, including 63 African cities, with
daily and multiple flights with a minimum layover in Addis. As a veteran carrier
serving a vast intra-African network, Ethiopian flies to more destinations in the
continent than any other airline. Having met its 15-year strategic plan, Vision
2025, ahead of time, Ethiopian has charted out a more ambitious strategic roadmap
called Vision 2035 to further bolster its continuous growth. In December 2011,
Ethiopian took a giant leap forward in its successful journey by joining Star
Alliance, the world’s largest airline network. Over the years, the multi-award-
winning airline has received countless coveted accolades and recognitions for its
excellence, including Skytrax’s Four-Star Airline Certification and Best Airline in
Africa title for 5 consecutive years, and Overall Excellence for Outstanding Crisis
Leadership Award in 2020 to mention but a few. Building on its continuous
success, Ethiopian has achieved an average growth rate of 25 percent in the seven
years prior to the COVID-19 pandemic.

20
4. DATA ANALYSIS AND INTERPRETATION
In this chapter data which is obtained from different groups through questionnaire
is analyzed and interpreted. The study focuses on evaluate saving habit, the reason
of limit the client to save, and the like.

The sample size of the study was 100 employees of ET. But when we distribute the
questionnaires, there were 10 employees who do not return the paper. So, the
analysis is done by 90% response rate which is by 90 employees of ET.

4.1. Analysis of questionnaires

Table 1 distribution of respondents by gender
Gender of the respondents
Respondents
No Description Number Percentage
(%)
1 Male 50 56%
2 Female 40 44%
Total 90 100%
(Source primary data from questionnaires, 2023)

21
According to data presented in table 1, out of 90 respondents 50(56%) were male
and the remaining respondent 40(44%) females. From this we can conclude that
most of our respondent’s who are men have more saving habit than women.

Table 2 distribution of respondents by age

Age of respondent
Respondents
No Description Number Percentage
(%)
1 18-30 M 17 19%

F 13 14%
2 31-40 M 19 20%
F 16 18%
3 41-50 M 9 10%
F 6 7%
4 Above 50 M 5 6%
F 5 6%
Total 90 100%
(Source primary data from questionnaires, 2023)

As summarized in the above table, among the respondents 17(19%) of respondents

aged of between18-30 are Male. The remaining 13(14%) in this age group are
females. Within the age group 31-40 19(20%) and 16(18%) of respondents are
male and female respondents respectively. Within the age group 41-50 9(10%) and
6(7%) of respondents are male and female respondents respectively. And for the
last age group which is above 50 years of age 5(6%) and 5(6%) of respondents are
male and female respondents respectively.
22
Table 3. Marital status of the respondent

Marital status of the respondents

Respondents
No Description Number Percentage
(%)
1 Single M 25 28%
F 12 13%
2 Married M 23 26%
F 27 30%
3 Divorced M 2 2%
F 1 1%
Total 90 100%
(Source primary data from questionnaires, 2023)

The table 3 shows 27(30%) of the female respondents and 23(26%) of the male
respondents are married, 25(28%) male respondents and 12(13%) of the female
respondents are single and 2(2%) of the male respondents and 1(1%) of the female
respondents are divorced. So, from the table the researcher can observe that
significant numbers of female respondents are married.

23
Table 4.Educational status of the respondents

Educational status of the respondents

Respondents
No Description Gender Number Percentage
(%)
1 From grade 9-12 M 10 11%
F 15 17%
2 Diploma M 10 11%
F 5 6%
3 Degree M 30 33%
F 20 22%
T 90 100%
otal

(Source primary data from questionnaires, 2023)

In case of level of education, 30(33%) of male respondents and 20(22%) of female

respondents have degree, 10(11%) of male respondents and 15(17%) of female
respondent completed their education from grade 9-12, and 10(11%) of male
respondent and 5(6%) of female respondent have diploma. So, from the table the
researcher can observe that significant number of the both gender respondents have
reached higher education.

24
 Table 5.Recruitment t information about the employees of ET

When did you get recruited in ET? Respondents

Gender Number Percentage
1 Within last two years M 20 22%
F 14 16%
2 Five years ago M 21 23%
F 20 22%
3 Ten years ago M 5 6%
F 5 6%
4 More than ten years ago M 4 4%
F 1 1%
Total 90 100%
(Source primary data from questionnaires, 2023)

As shown above regarding the recruitment history of the employees 45% of the
sample group are recruited five years ago, 38% within last two years, 12% Ten
years ago and 5% More than ten years ago. This will not generalize that the
number of employees who served ET for more than a decade is few in number
rather when they become more experienced they will be sent to different countries
as an area manager or it will be hard and time consuming to meet them to get their
response to conduct the research and this is one limitation of the paper.

Table 6. Saving trend of the respondent

25
 Saving and capacity trend of the respondents

No Description Respondents

Gender Numbe Percentage

r

1 Do you save your part of Yes M 50 55%

income?
F 40 45%

2 How often do you save? Daily M 6 7%

F 4 4%

Weekly M 2 2%

F 3 3%

Monthly M 15 17%

F 13 14%

Not saving regularly M 27 31%

F 20 22%

Total 90 100%

3 If you are not saving High inflation rate M 20 22%

regularly, what is the F 20 22%
reason? My income is M 15 17%
seasonal F 10 11%
Transportation cost M 15 17%
is high F 10 11%
Total 90 100%

(Source primary data from questionnaires, 2023)

26
The above table shows the saving trend of the respondents. It shows that 90(100%)
of the respondents save part of their income. With regard to time to save 28(31%)
respondents save their income monthly, 10(11%) respondents save daily, and the
rest 5(5%) respondents save weekly, respondents not saving regularly 47(53%).
So, from the table the researchers can observe that a significant number of
respondents save their part income and most of them not saving regularly.

Table 7. Capacity trend of the respondents

27
 No Description Respondents

Gender Number Percentage

1 If daily/weekly/ monthly 0-50 M 5 6%

how much is your capacity
F -
to save?
51-300 M 10 11%

F 5 6%

301-500 M 25 27%

F 20 22%

500 and above M 10 11%

F 15 17%

Total 90 100%

(Source primary data from questionnaires, 2023)

Out of respondents asked about their income regularly in terms of daily, weekly
and monthly basis. From these respondents who save their income, 5 (6%) of male
employees save 0-50 birr from their income, 10 (11%) of male employees and 5
(6%) of female employees said 51-300, 25 (27%) of male employees and 20 (22%)
of female employees said 301-500 and 10 (11%) of male employees and 15 (17%)
of female employees said above 500 Birr. So, from the table it can be observed that
a significant number of them have a capacity to save ranging from 301-500 birr.

Table 8. Respondent’s response regarding having other source of income other

than monthly salary

28
NO Description Respondents
Gender Number Percentage
1 Do you have other source of income YES M 37 42%
other than your monthly salary? F 12 13%
NO M 13 14%
F 28 31%
Total 90 100%
Out of respondents who were asked about having other source of income other
than monthly salary 37 (42%) of male employees and 12(13%) of female
employees said yes while the rest 13 (14%) of male employees and 28(31%) of
female employees said no.

Table 9. Respondent’s opinion if genders of employee affects saving habit

NO Description Respondents
Gender Number Percentage
1 In your opinion, does the gender of YES M 27 30%
employees affect saving habit? F 28 31%
NO M 23 26%
F 12 13%
Total 90 100%

(Source primary data from questionnaires, 2023)

The respondents were also asked their opinion if genders of employee affects
saving habit and were also asked to describe the impact of their gender on it and
almost half percentage of the sample population chose yes and the rest of them no.
So from this we can get information that yet gender of employees will have impact
on the saving habit of employees there are also a number of factors that affect their
saving habits.

Table 10. The purpose of saving

29
 No Description Respondents
Gender Number Percent
1 What is the purpose Emergencies M 20 22%
(goal) of your current purpose F 25 28%
saving? Children’s M 5 6%
education F 10 11%
to start or expand M 25 27%
business F 5 6%

90 100%
Total
(Source primary data from questionnaires, 2023)

Out of 90 respondents asked about the purpose of their saving 20 (22%) of male
employees and 25(28%) of female employees said that it is for emergencies
purpose, 5 (6%) of male employees and 10 (11%) of female employees said that it
is for children education and 25 (27%) of male employees and 5 (6%) of female
employees said that it is for business expansion. Out of 90 respondents asked about
the purpose of their saving the highest number 45(50%) said it is for emergency
purpose.

30
Table 11. The challenges of employees to increase saving

Description Percent
No
Gender Number Percent

1. What is challenging My income is small to save M 25 28%

you to increase your part of it
current saving amount F 28 31%

My spending is to high M 20 22%

compared to my income
F 10 11%

I prefer to invest in other M 5 6%

business
F 2 2%

I prefer to save in kind - -

Total 90 100%

(Source primary data from questionnaires, 2023)

The result presented in table 11 above showed that the challenges of employees to
increase their saving. From 90 respondents asked about the challenges related to
increase their saving 25 (28%) of male employees and 28 (31%) of female
employees said that their income is small, 20 (22%) of male employees and 10
(11%) of female employees said their spending is to high compared to their income
and 5 (6%) of male employees and 2 (2%) of female employees prefer to invest in
other business, So Most employees don’t save because their income is small to
save part of it.

Table 12. The suggestion of employees to improve saving habits

No Variable Description Gender Number Percent

31
1 What do you suggest to Use technology like M 22 24%
improve saving habits of banks & MFI
employees? F 15 17%

Offer individual M 8 9%
retirement account
F 10 11%

Educate employees on M 20 22%

financial
F 15 17%
empowerment

Total 90 100%

(Source primary data from questionnaires, 2023)

In related to suggestion to improve saving habit of employees, from 90 respondents

22 (24%) of male employees and 15 (17%) of female employees suggested the use
technology like banks & MFI, 8 (9%) of male employees and 10 (11%) of female
employees suggested the organization to offer individual retirement account and 20
(22%) of male employees and 15 (17%) of female employees suggest to educate
employees on financial empowerment.

CHAPTER FIVE

5. SUMMARY OF FINDING, CONCLUSION AND RECOMMENDATION

In the previous chapter it was tried to describe and assess dissimilarities among
genders for saving habits in the case of Ethiopian airlines Employees. This chapter

32
summarizes data presented and analyzed in the analysis part and forwards some
recommendations in order to improve the saving habit of Employees.

5.1 SUMMARY OF FINDING

v Most of the Employees in ET are at their most productive age being males a
little bit higher in number and their marital statuses are married for these
females will take a higher proportion but not that significant difference.
v Regarding education status most of the Employees’ education level is they
have completed higher education, this makes it easy to operate in modern way
and introduce new technologies regarding saving.
v The research identified that men have a little bit higher saving habit compared
to women. It seems that the reason behind this is males have another income
in addition to apart from their monthly salary.
v All Employees in ET have capacity to save. But they do not know how they
can save and more over lacking skills, high transportation cost and seasonal
income makes it hard to save constantly.
v The sum of all problems for saving above is seen as the barrier of saving,
which is mainly lack of knowledge about how and where to save. More over
from the research it has been discovered that rather than the gender of the
respondents, the high inflation rate the income being imbalanced with the
consumption and with some respondents investing in different projects leads
them to save less.

5.2. CONCLUSION
Household saving is defined as income that is not consumed. Savings can be kept
in cash form, saved in a bank account or saved in long-term assets, such as
government bonds. The following are some of the factors that affect the saving
habit of individuals.

33
• Interest rates – higher interest rates make saving more attractive.

• Rising income enables higher savings. People on very low incomes cannot afford
the luxury of saving

• Economic growth – high growth and high consumer confidence encourage

relatively higher spending and a fall in the savings ratio.

• The age of individuals

• Cultural trends – some cultures have a stronger ‘saving culture’ – others pursue
higher spending and borrowing.

• Wealth – Rising house prices increase household wealth and diminish the need to
save in other forms.

• Inflation – high inflation may discourage cash saving, but encourage the purchase
of fixed assets.

Factors influencing saving levels

1. Interest rates
Higher interest rates mean that households will gain a higher rate of return on
depositing savings in a bank. Ceteris paribus, higher interest rates should
encourage saving.
2. Income levels/Economic growth
Rising income levels will lead to a rise in total saving levels. As households gain
more disposable income and have the ability to save more. However, periods of
economic growth can also create optimism and confidence amongst consumers and
encourage a relatively higher percentage of consumption. When households expect
rising incomes, then they are more likely to borrow to finance luxury goods and cut
back on spending.

3. Income distribution
Typically households on low income will have very low saving levels. They need
to buy necessities and do not have the ‘luxury’ of being able to save. As incomes
rise, households tend to have a higher marginal propensity to save. This is because
with higher incomes there is a diminishing marginal utility to consumption –

34
households with extra income are more likely to save it. If there is a rise in
incomes of the low paid, this will have a bigger impact on increasing savings than
if there is a rise in incomes of the wealthy. A reduction in inequality can increase
saving levels.
4. Wealth
In a period of rising asset prices, households may feel less necessity to save.
5. Confidence
Confidence and expectations of the future have a large bearing on saving. If
households are optimistic about the future, they are more willing to borrow and run
down savings. But, if confidence is low, then it is an incentive to save for
unexpected problems. Factors that will influence economic confidence are closely
related to the current economic climate, e.g. the rate of economic growth,
unemployment levels, and house prices.
6. Demographics/Age distribution
Life cycle theories of consumption argue that individuals try to smooth
consumption over a lifetime. An ageing population can lead to a fall in the saving
ratio.
7. Unexpected events
8. Inflation
Inflation can have an effect on saving. If there is high inflation – and if inflation is
higher than interest rates, then this will discourage saving. Households may look to
either spend money before it falls in value or buy assets which hold their value
during inflation.
9. Cultural factors
Saving rates can vary between countries. It can reflect attitudes to borrowing,
saving and social expectations.
The results of study show that males and females have less significant difference
on saving habits. According to descriptive analysis females are a little more likely
to save for short term as compare to males while males are likely to save almost for
short, medium and long term purposes also. Education and income level of males
of the samples are higher than females while the most of females are salaried and
government employed. On the hand males are dependent on salary and foreign
remittance with having work status of government and self-employed. In term of
percentage saving, males save more as compare to females while they have more
risk aversion behavior than males. Consumption patterns of both genders are as
males spend more for house hold purpose while females spend on miscellaneous
35
expense. Males with higher level of income save more while females do not save
more by increasing their income level while married males save less as compare to
females. Most important conclusion regarding the impact of consumption pattern is
that when males have to spend more for household and less for miscellaneous
expense than they will save more as compare to females who will save less in same
case.

The saving behavior of males is negatively related with females because males
spend more for education as compare to females and when they have to spend on
education females save more than males. If the spending level is high and saving
level is too low then individuals with higher income may be asked to pay higher
taxes to help those individuals have low income for their departures. It is also
important in this way that, some people who have low income and low education,
they save very low amount of their income. So, it must be important to target these
low income and low educated people and develop policies according to their needs.
These policies and programs can provide guidance to poor’s to increase their
income level then their saving habit will be increased.

This study shows that men save more than females and women spend more than
males but the dissimilarity is not that significant, this information can be beneficial
for financial intermediaries, companies and for government in making polices for
this area. Here men save more but little knowledge for investment, investment
firms can focus on this area and use the saving money of the people for investment.
People spend for health facilities and education government can improve health
facilities by devising better policies so that genders can reduce their medical
expense and improve their saving levels by working in better environment.
Education should be promoted by government by increasing budgets for education.
There must be free schooling and also scholarship to provide opportunity to
individuals to spend less on education. Further research on saving behavior can be
conducted on the country as a whole to get a better data to have a better
conclusion. Uncertainty and risk have significant impact on saving behavior rather
than gender, so upcoming research studies could be on uncertainty and saving
behavior. There are many topics which can be analyzed with reference to saving
behavior of individuals as saving behavior of individuals can be checked in terms
of cultural differences and economic conditions of countries.

5.3 RECOMMENDATION
36
To minimize factors of minimum saving habits of employees in the organization,
the level of education should be considered when an employee has a complicated
living condition. When this is the case, appropriate monthly salary, house and
inflation rate must be taken in consideration and should be given special attention.
Putting the above consequences of minimum saving habits, the following
recommendation should be implemented by the concerned bodies:
· Since the level of education is one of the problems identified in this study,
attention should be given education and training of employees. related with
saving
· Most employees lives by renting a private house. This contribute to the
minimum saving habits of employees, thus, the organizations as well as the
government should give attention for those people to solve this problem.
· Since the inflation rate is high and employees consumption rate of their
income is getting higher now a days, the organization need to work on
conducting a research on the sufficiency of employees salary to save part of
their income. Hence, either additional allowance should be given or their
monthly salary should be increased for the employees.
· Transport service from home to work place and back to home should be
encouraged in the sector. Regarding this the airline provides transportation
service for most employees but yet there are shifts were transportation is not
provided for the employees so that minimizes the saving capacity of
individuals.
· The organization also must create awareness on having additional
businesses to increase the employee’s income that will have a positive
impact on their saving habit.
· Work more on awareness creation and advocacy regarding the advantage of
saving.
· Support and promote the activities of saving associations. There is
such kind of association in the airline

REFERENCES
Ø Aron Hailesellasie 1*, Nigus Abera2, Getnet Baye3. ol.4, No.15, 2013. 1.
Assessment of Saving Culture among Households in Ethiopia.

37
Ø BersalesL. G. S., & Mapa,, (2006). D. S. Patterns and determinants of
household saving in the Philippine.
Ø Creswell, W (2003), Research Design: Qualitative, Quantitative and Mixed
Approaches,‟ 2nd edition. Sage publication, California.
Ø G. A. N. CHOWA ET AL. social stratification
Ø Mosk C. (2010) Japanese Industrialization and Economic Grow, University
of Victoria, unpublished document
Ø Mubarek Sani; 2006 Published; Economics.
Ø Robson. U. (2002). Research Methos for Business: A skill building approach
Ø Sinha D. (1998) Saving-Investment Relationship in Japan and Other Asian
Countries, CJES Researcher Papers No.
Ø Wolday Amha. (2008-2017). A decade of microfinance institutions (MFIs)
development in Ethiopia: growth, performance, impact and prospect:
Ø Wolday A. & A. Tekie (2014). Household saving behavior and saving.
Mobilization in Ethiopia. Ethiopian Inclusive Finance Training And.
Research Institute: Addis
Ø Zikmund, W.G. (2003) Business Research Methods. 7th Edition, Thomson/
South-Western. ... It was conducted in four socio-cultural zones of
Cameroon involving 307 ...

NOTE: There some authors included in the body but not included in the
reference part

APPENDEX
ADDIS ABABA UNIVERSITY
38
 SCHOOL OF COMMERCE
DEPARTEMENT OF ACCOUNTING AND FINANCE
Questionnaire to be filled by the Employees of Ethiopian airlines

The questionnaires are designed to obtain primary data on the issues related to the
Dissimilarities among genders for saving habits in the case of Ethiopian airlines
Employees. The aim of the study is for the preparation of senior essay required for
the partial fulfillment of BA degree in Accounting and finance department at
ADDIS ABABA University. The information you are going to supply will play a
great role for the success of the study. All information that you will provide will be
used at most confidentiality and used only for academic purpose. The respondents
will make this research successful.
Instruction:

ü Please attempt the entire questions and dictate your reliable answers for each
question by marking “X” in the given box or answer line.

ü No need of writing your name

v Personal information

· Sex: A. male B. female

· Age: A. 18-30 B. 31-40 C. 41-50 D. above

50

· Marital status

o Single
o Married
o widowed

39
· Education status

o illiterate
o From 1-8
o from 9-12
o diploma
o degree
· When did you get recruited at Ethiopian airlines?

1. within last two years

2. Five years ago

3. Ten years ago

4. More than 10 years

· Do you save part of your income?

A. Yes B. No

· How often would you save?

Ø Daily

Ø Weekly

Ø Monthly

Ø Not saving regularly

· If you are select not saving regularly in question 11, what is the reason
inhibits you from doing it?
1. High inflation rate
2. My income is seasonal to save frequently
3. High cost of transportation to deposit
40
 4. I do not have the time to deposit
5. Other, please specify----------------------------------------------
· If daily/weekly/monthly, how much is your capacity to save?

A. 0-50

B. 51-300

C. 301-500

D. 501 and above

· Do you have other source of income other than your monthly salary?
Yes No
· In your opinion, does the gender of employees affect their saving habit?
Yes B. No

· If your answer is yes for the above question, can you specify how it is
affected?

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---------------------------------------------------

· What is the purpose (goal) of your current saving?

A. Emergencies purpose
B. Children’s education
C. To start or expand business
D. Retirement (for old age)
E. For holiday: Meskel, Christmas, Arefa, New Year, etc
F. To buy household assets

41
 G. Others (specify) _____________________________
16. What is challenging you to increase your current saving amount?
A. My income is too small
B. I prefer to invest in other business
C. My spending is too high compared to my income
D. I prefer to save in kind
E. Others (specify)______________________________

17. What are the difficulties related to saving?

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18. What do you suggest to improve saving habit of employees?

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42