COVID-19 and Age Disparity in Credit Card Expenditures in Korea: Implications on the Government Relief Fund

Byungjin Park and Joonmo Cho

SAGE Open, 2023, vol. 13, issue 4, 21582440231206664

Abstract: This study examined the difference in expenditure behavior by age group through an empirical analysis of changes in card expenditure after the COVID-19 outbreak, using card transaction data in Korea. It also investigated whether changes in card spending reflecting changes in expenditure behavior occur because of the spread of infectious diseases. A panel analysis was employed using data from 2018 to 2020. After the outbreak, total expenditure decreased by 15.6%, with the spending of older, middle-aged, and young adults falling by 18%, 15.8%, and 14.1%, respectively. Spending on eating out declined by 24.3%, while that on eating in increased by 2.2%, a tendency that is more prominent for older adults. These findings suggest that the COVID-19 pandemic affected expenditure behavior, and the change varied by age group. This implies that the consumption-boosting effect of the COVID-19 relief fund may differ by age group with the different marginal propensity to consume.

Keywords: COVID-19; age group; infection; credit card; expenditure behavior (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:sae:sagope:v:13:y:2023:i:4:p:21582440231206664

DOI: 10.1177/21582440231206664

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