Study On The Relationship Of Age Structure And Household Consumption

The aging is one of the important factors which challenges to sustained economic growth. It’s a part of the social change. For the families, an aging population and baby bust can make an important influence on family’s daily life on the way of the participate in the labour market of household members, income and expend, living type, intergeneration transfer in live care and economic. The reliance on household activities increases of the children and the elderly for their social demand social radius limited day by day. At present, how the families consider the children and the elderly members’ demands in economic activities? How it behaves of household consumption expenditure and the consumption structure in households with different old dependency ratio and children dependency ratio?Using the baseline data of The China Health and Retirement Longitudinal Study (CHARLS) in2011, household consumption expenditure and the consumption structure of middle-aged and old residents in cities and towns are studied in the paper. The relationship of old dependency ratio or children dependency ratio in different level and the household consumption expenditures is mainly studies. Descriptions about the variables are made in this paper. The second step is to establish the regression model on the basis of the consumption function theory. The empirical outcomes show that the higher ratio of old dependency ratio in urban areas related consumer spending per person significantly decreased in the households. Health care spending is obvious positive correlation. Further discuss is based on the regression results about the reason of higher elderly dependency ratio decreased household consumption expenditure while increased medical total consumer spending and accounting.