Effect Of The Aging On Urban Residents' Consumption Inequality

Since the reform and opening,the living standards of the people rise year by year.The Chinese nation has achieved a tremendous transformation:it has stood up,grown rich,and is becoming strong.However,the problems of aging have caused various social contradictions,and the problem of aging on consumption inequality has become the root of many social contradictions.Studying on the impact of aging on consumption inequality,the key and difficult point is the adjustment of age effect,that is,how to exclude the birth-group effect and eliminate the interference of age related factors.In view of this,this paper starts with the adjustment of the birth-group effect and the age related factors,analyzes the urban residents'consumption inequality from the perspective of aging.This paper is helpful to recognize the source of consumption inequality and to reduce the aging and reduce the consumption inequality.First of all,based on the relative literature,the consumption inequality is decomposed into the birth-group effect and the cohort effect according to the study of Ohtake and Saito(1998).The cohort effect is divided into the age effect and age related factors according to the study of Almas and Magne(2009).Then,age-adjusted Gini coefficient is derived,so the influence of age effect on consumption inequality is eliminated and the influence of age related factors is retained.This part provides the basis for the later empirical analysis.Second,this paper uses the CHIP urban survey data of 1995-2013 years,selects the key variables in this paper,selects the sample data according to the theoretical model,and carries out a descriptive statistical analysis of the selected data.This part is the preparation for the following empirical analysis.On the basis,this paper decomposes the consumption inequality into the birth-group effect and the cohort effect.The results show that the birth-group effect is significant and has a positive effect on the consumption inequality.The birth-group effect will become more and more important.The cohort effect coefficient is not significant before 41 years old.The cohort effect is increased with age after 41 years old.Third,this paper employs a multivariate regression model to isolate the age effects,while controlling other determinants of consumption constant.Then,the consumption distribution of perfect equality is determined and age-adjusted Gini coefficient is derived finally.In this way,we eliminate the interference of age-related factors and accurately estimate the impact of aging on consumption inequality.The results show that:(1)The age-adjusted Gini coefficient is gradually increased,showing the trend of consumption inequality of urban residents in China is enhanced after excluding the influence of aging.(2)The classical Gini coefficient is always smaller than age adjusted Gini coefficient,indicating that the aging of urban residents in China has a negative effect on consumption inequality.(3)The age effect of consumption inequality of urban resident is at a low level but the role of age effects in consumption inequality will become more apparent in the future.Finally,this paper puts forward relevant policy suggestions from the following aspects:short-term policy formulation,long-term policy formulation,policy making perspective,policy pertinence and policy foresight.By the study of this paper,we can balance the relation between aging and consumption inequality and provide a reference for policy making and future research.