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

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.