Chasing Dreams, Facing Reality: Uncovering the Impact of Wealth Inequality on Household Tourism Consumption

Wealth inequality has become increasingly pronounced on a global scale. Drawing on the Life-Cycle Permanent Income Hypothesis and Social Comparison Theory, this study leverages national-level household tracking survey data and the Bartik-type IV-Heckman model to investigate the impact of wealth inequality on household tourism consumption. Results show that wealth inequality significantly inhibits household tourism consumption. Heterogeneity analysis reveals that the inequality of durable goods wealth exerts the greatest negative impact, followed by housing and financial wealth. Additionally, indebted households experience a relatively smaller negative impact from wealth inequality on their tourism consumption. Further mechanism analysis indicates that the channels through which wealth inequality inhibits tourism consumption include intensifying liquidity constraints and wealth status seeking motives, as well as diminishing consumer confidence. Based on these findings, this study offers theoretical implications and suggests that household tourism consumption can be stimulated through measures targeting tourism payments, tourism products, and tourism value.