Cohort consumption in the Russian Federation

Abstract

The current demographic situation in both developed and developing countries is characterized by an aging population. From an economic perspective, this phenomenon holds practical significance for studying anticipated changes in the structure of state budget revenues and expenditures, as well as alterations in the overall consumption of goods and services. This paper investigates the spending patterns of different generations in the Russian Federation. In foreign literature, there is an observed increase in consumption with each successive generation compared to its predecessor. This trend is commonly attributed to declining fertility rates, the accumulation of capital by one generation, and its subsequent transfer to the next. Consequently, the younger generation tends to possess more capital than their forebears. The level of consumption across generations is also influenced by the life expectancy of the population; an extension of healthy life expectancy enables individuals to remain active in the workforce beyond retirement age. Utilizing data from the Russian Longitudinal Monitoring Survey (RLMS), HSE conducts cohort consumption estimates for the years 2000-2020, categorized into five-year age groups. The study results indicate an increase in consumption levels beyond the age of 50 for cohorts born between 1930 and 1955. Conversely, for cohorts born between 1960 and 1999, the consumption levels below the age of 50 remained relatively unchanged.