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The Recent Increase in Dual-Income Households and Its Impact on Consumption Expenditure

November 30, 2017
Ko Miura*, Masato Higashi
Research and Statistics Department

  • Currently at the Personnel and Corporate Affairs Department

In recent years, the increase in dual-income households has been remarkable. The main factor in this increase has been the successful efforts of the government and firms in promoting female labor force participation in a tight labor market. In addition, negative factors such as the heightened concern of mainly middle-aged people regarding their financial situation in old age has also affected the increase in dual-income households. Looking at the effects of the increase on dual-income households' consumption expenditure and savings, it is clear that the increase in income corresponds with an increase in consumption expenditure. Meanwhile, the increase in dual-income households also contributes to a rise in the savings rate (a decline in propensity to consume), which is considered to be one reason why macroeconomic propensity to consume has declined since about 2013.

Notice

Bank of Japan Review is published by the Bank of Japan to explain recent economic and financial topics for a wide range of readers. This report, 2017-E-7, is a translation of the original Japanese version, 2017-J-14, published in September 2017. The views expressed in the Review are those of the authors and do not necessarily represent those of the Bank of Japan.

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