The Impact Of Extending Retirement Age On Household Consumption In China

In the context of China's deepening aging and challenges to investment and exports,it is of great practical significance to discuss how to increase consumption and expand domestic demand in order to change the pattern of economic growth.On August 28,2018,the Department of Social Security responded to recommendation No.4742 of the First Session of the 13 th National People's Congress,stating that it will propose a work plan to extend the retirement age in due course according to China's national conditions.However,due to the fact that the delayed retirement policy has not been implemented in China,this paper will focus on the impact of the middle-aged and elderly people's voluntary extension of the retirement age on China's household consumption at this stage,the research object of this paper mainly refers to the middle-aged and old people who have reached the legal retirement age and are re-employed.In this paper,the family as the research unit,through the establishment of family consumption decision-making model,and the use of Individual Fixed Effect Regression Model and Propensity Score Matching and Differ-In-Differ,this paper Makes Theoretical Analysis and empirical research on whether the change of the middle-aged and old people returning to work after retirement in China has a significant impact on family consumption,the findings are as follows:(1)the consumption level of middle-aged and old people in their families will be significantly increased when they return to work after retirement,and the increase of family consumption caused by women's work after retirement is slightly higher than that of men's.(2)from the point of view of various items of consumption,the re-engagement of the middle-aged and elderly people in China after retirement will lead to a significant increase in consumer spending on food,clothing,transportation,communications,services,medical care,durable goods,social donations,etc.,andthe household basic expenses including daily necessities,water,electricity and gas,property heating,and entertainment expenses including education and training,cultural entertainment,family travel,etc.(3)from other control variables,participating in medical insurance and endowment insurance can effectively promote the consumption level of their families,which is also consistent with the conclusion of many previous studies.(4)when discussing family consumption by gender,we find that when women are married and living with both spouses,the consumption of their family is higher than that of single(including divorced,widowed,never married)women's family.In addition,in order to provide reference for whether the country should implement the policy of delaying retirement and expand domestic demand,this paper also gives some suggestions for the above four findings:(1)the retirement age can be appropriately postponed,the young and old who are physically able to do so will continue to participate in social productive activities.(2)to properly narrow the gap between the retirement age of women and that of men,so as to fully unleash the consumption potential of women.(3)to develop more consumer markets for the middle-aged and elderly to help improve the quality of life of the elderly population as the goal to develop "silver hair" industry and tap the consumption potential of this group.(4)continue to improve the social security system,including medical insurance,old-age insurance and so on,in order to ease the economic pressure caused by the uncertainty of families.