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The Rise of Single-Person Households and the Macroeconomic Consequences

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  • Lim, Taejun

Abstract

The number of single-person households in the U.S. has steadily risen since 1960. We provide a dynamic general equilibrium model to investigate the impact of this change on aggregate savings and labor supply. Our analysis indicates that single individuals tend to save and work more than married ones with the same economic characteristics. Importantly, this finding at the individual level extends to the aggregate level: both aggregate savings and labor supply increase as the share of single-person households increases, for which the general equilibrium effect plays a crucial role.

Suggested Citation

  • Lim, Taejun, 2019. "The Rise of Single-Person Households and the Macroeconomic Consequences," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 60(2), pages 189-198, December.
    • Handle: RePEc:hit:hitjec:v:60:y:2019:i:2:p:189-198
    DOI: 10.15057/30890
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    References listed on IDEAS

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    Cited by:

    1. Lee, Ming-Hsuan & Lai, Wei-Ling, 2024. "Does being single bring freedom or burden? Examining the expenditure patterns of single-person households in Taiwan," Journal of Asian Economics, Elsevier, vol. 92(C).

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    More about this item

    Keywords

    single-person households; within-household risk sharing; precautionary savings;
    All these keywords.

    JEL classification:

    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

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