Life-cycle Consumption Expenditure and Inequality

Marek Sedivy

No 2025/25, Working Papers IES from Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies

Abstract: We study the evolution of consumption expenditure and its distribution over the life-cycle. We estimate age and cohort effects relying on household-level consumption survey data, reaching several conclusions. First, we find significant differences in durable and nondurable life-cycle consumption profiles. While the former remains relatively stable until middle age and decreases afterward, the latter displays a hump-shaped profile. Second, only a few subclasses of nondurable consumption exhibit hump-shaped profiles. This group includes work-related subclasses such as clothing and personal care, food away, and transport. Third, we find that inequality in durable and nondurable consumption increases sharply around middle age.

Keywords: cohorts; consumption; consumption profiles; life-cycle; inequality (search for similar items in EconPapers)
JEL-codes: D14 D15 (search for similar items in EconPapers)
Pages: 46 pages
Date: 2025-11, Revised 2025-11
New Economics Papers: this item is included in nep-eur and nep-mac
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Persistent link: https://EconPapers.repec.org/RePEc:fau:wpaper:wp2025_25

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