Shanghai Population Aging Effect On Consumption

Shanghai is the first stepped into the aging city, as early as in the third census,Shanghais population over the age of60had reached11%, more than a generalsense of10%for the aging city limits. In2010, Shanghai’s aging degree is more than15%. At the same time, Shanghai’s aging degree is always5%higher than thenational. Shanghai’s aging degree is very serious. In twenty-first Century, the agingpopulation has become a global challenge and China as the worlds most populouscountry faces more severe challenge. Shanghai is a national economic center city, westudy the effect of population aging on Shanghai’s economic growth has asignificance to the same problem which China will face in the future. There are twospecific ways to affect the consumption of the elderly population, caused by theelderly consumer habits and consumer preferences for consumption. The elderlypopulation depending on the health of consumer demand is different. The elderlypopulation of low-ages consumer demand is mainly concentrated in the spiritual andcultural needs and clothing demand, consumer demand for high ages elderlypopulation is mainly concentrated in the demand for social services and health careneeds. Another approach is the aging change in the proportion of the labor force andthe population of children in the society, making the consumer impact. This articlepopulation aging population in Shanghai dual aging characteristics, that the low birthrate and natural growth rate is negative. Another point is that the Shanghaihousehold registration number of the labor population growth peaked relies mainlyon foreign labor to slow down the aging process of the Shanghai.Firstly, the conclusion is the increase in the proportion of the elderlypopulation will reduce the final consumption by the introduction of an agingpopulation factors into classic consumption function. Followed by the introduction ofthe VAR model, the aging of the population factors come to the increase in theproportion of the elderly population in Shanghai to boost future consumption. Andpropose a relaxation of the birth control policy, to postpone the statutory retirementage; accelerate the reform of the medical system, improve the elderly service system; adjust consumption structure, vigorously develop the industry for the elderly andother policy recommendations.