The Analysis Of The Effects Of The Change In Population Structure On Household Saving Rates

Since the reform and opening up，China’s income continues to rise，the quality of theconsumer increases，consumption structure optimizates，while it appears an “abnormal”phenomenon in the consumption of Chinese residents. The willingness of residents to consume isnot strong, somehow lack of confidence. Neither average propensity to consume nor marginalpropensity to consume has emerged as the state continued to decline, while the rate of savings issoaring and household savings rate remains high. Taking the factors that affect the rate of savingsinto considerations, this article will select one factor that is closely related with China’s basicnational conditions: demographic changes of population structure which results from a fullimplementation of the family planning policy. Since the late70s of last century，China began toimplement a comprehensive family planning policy，China’s population age structure changed.Meanwhile, ultrasound B machines gradually became widespread in Chinese hospitals andclinics，parents could choose to perform abortion，China’s population sex structure alsounderwent tremendous changes. This article intends to take demographic variable as mainexplanatory variable in the study, do the empirical analysis with1991——2011macro-provincialpanel data. It turns out that both Children dependency ratio and Sex ratio have significant effectson the household saving rates, which is consistent with theoretical expectations. Elderlydependency ratio has significant effect only in the static fixed effects model and is inconsistentwith the theory, but it can be explained through in the reality of life in China.