Abstract:

This article empirically investigates the impact of consumption peer effects among left-behind parents at the household level using data from the China Health and Retirement Longitudinal Study (CHARLS). This research discovers that the consumption behavior of left-behind parents is influenced by the consumption of other parents within the same village. This effect is stronger when other parents are also left–behind parents. Heterogeneity analysis reveals a non–linear effect that stabilizes once peer consumption surpasses a certain threshold. Mechanism analysis indicates that the presence of social networks is a prerequisite for the occurrence of consumption peer effects among left-behind parents, while social learning acts as a key channel for the impact of peer effects, with left-behind parents being more inclined to acquire daily consumption habits from peers rather than imitating conspicuous consumption patterns. Specifically, elderly left-behind individuals tend to emulate and learn from the consumption behavior of other elderly left-behind groups. The study also finds that elderly left-behind parents tend to imitate the consumption behavior of other elderly left-behind groups,and that the peer effect on the consumption of left-behind parents is stronger than that of non–left-behind parents. This research is of policy implication by suggesting that left-behind parents need more social care and retirement support.

Key words:

consumption of left-behind elderly;peer effect, social network;social learning