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Impact of population aging and declining birth rates on household consumption structure: Evidence from China

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  • Fan, Shiwen
  • Hui, Liang
  • Dou, Lei
  • Hui, Meimei

Abstract

The age structure of a population is a crucial indicator of a country's economic development. This study analyzes the impact of population aging and declining birth rates on the household consumption structure in urban and rural China. China, the largest country by population, is selected owing to its significance in population studies. Using a fixed effects model, our findings reveal that in China, a higher proportion of youth in the population positively affects residents’ spending on survival consumption while negatively affecting developmental consumption. Conversely, a higher proportion of older adults in the population negatively affects survival consumption while positively influencing developmental consumption.Through the research in this article, it is hoped that the results can provide some reference significance for the changes in population age structure and the development of resident consumption.

Suggested Citation

  • Fan, Shiwen & Hui, Liang & Dou, Lei & Hui, Meimei, 2024. "Impact of population aging and declining birth rates on household consumption structure: Evidence from China," Finance Research Letters, Elsevier, vol. 68(C).
    • Handle: RePEc:eee:finlet:v:68:y:2024:i:c:s1544612324009620
    DOI: 10.1016/j.frl.2024.105932
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    3. Birgit Aigner-Walder & Thomas Döring, 2012. "The Effects of Population Ageing on Private Consumption — A Simulation for Austria Based on Household Data up to 2050," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 2(1), pages 63-80, June.
    4. Birgit Aigner-Walder & Thomas Döring, 2012. "The Effects of Population Ageing on Private Consumption – A Simulation for Austria Based on Household Data up to 2050," Eurasian Economic Review, Eurasia Business and Economics Society, vol. 2(1), pages 63-80, Spring.
    5. Sarah Smith, 2006. "The Retirement-Consumption Puzzle and Involuntary Early Retirement: Evidence from the British Household Panel Survey," Economic Journal, Royal Economic Society, vol. 116(510), pages 130-148, March.
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    Cited by:

    1. Guangzhi Qi & Zhibao Wang & Chengxin Wang, 2025. "Towards Demographic Sustainability: Multi-Scale Spatiotemporal Evolution and Factors of Population Aging in the Bohai Rim Region," Sustainability, MDPI, vol. 17(4), pages 1-26, February.
    2. Li, Zeyu & Jiang, Yanyan, 2025. "Strengthening resilience through trade: Development of service trade and enhancing export resilience," Finance Research Letters, Elsevier, vol. 78(C).
    3. Lee, Chien-Chiang & Yan, Jingyang & Xuan, Chengnan, 2025. "Blessing or curse? The effect of population aging on renewable energy," Energy, Elsevier, vol. 320(C).
    4. Wen, Huwei & Shang, Junjie & Nghiem, Xuan-Hoa, 2025. "Does artificial intelligence matter for the population aging-inclusive growth nexus? International evidence," Telecommunications Policy, Elsevier, vol. 49(4).

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    Keywords

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    JEL classification:

    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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