Intergenerational Comparative Study on Consumption of Migrant Workers in China

Based on China urban labor survey data of 2016, this paper investigates the differences in consumption level and structure between the new and previous generation rural migrant workers in China and identifies the determinants of migrant workers' consumption. According to descriptive analysis, the new-generation migrant workers' households spend 26% more on an annual per capita basis compared with their previous generation. More specifically, the new-generation migrant workers' households spend 33% more on clothing, food, housing and travel, and 10% more on healthcare on an annual per capita basis compared with their previous generation, while their per capita spending on education is only 73% that of their previous generation. Result of regression analysis shows that with other factors under control, the new-generation migrant workers' households spend 14.9% more on clothing, food, housing and travel compared with their previous generation, and their per capita gross consumption is 10.9% higher than that of their previous generation. Consumption elasticity for clothing, food, housing and travel among the new-generation migrant workers' households and their overall consumption elasticity are both significantly higher than those of the previous generation migrant workers' households. Compared with their previous generation, the spending of the new-generation migrant workers' households on clothing, food, housing and travel represents a higher share of their overall consumption, and the share of their educational consumption is even lower.