Research On The Efficiency Of China's Social Security System On Urban Household Saving

In the development history of social security system, the connection between social security and economy development catches people's eyes most. Especially in modern society, social security system makes big influence on both macro economy and micro individuals. As a great public policy, social security system affects all aspects of economy life widely and deeply, especially on the key factors of economy growth—capital and labor force. Therefore, the study on the connection between social security and the key economic variables, such as saving, consumption, labor force supply and demand, etc., offers theoretical and practical foundation for both economy growth and the sustainable development of social security system.In a certain period after the war, the rapid accumulation of social fortune conditioned the development of social security system, which was built up and developed rapidly in more than one hundred countries. In recent years, as the emergence of aged society problems, the sustainable development of social security system has become the focus of social security reform in all countries. The economic effect of social security has become the focus of discussion for a long time. The arguments about the social security effect on saving almost impenetrate the global social security reform all the way.The history of modern social security system in China is comparably short, till now, social security is mainly set up in cities and towns, while the covered area is comparably smaller in rural district, where the varieties of social security are also limited. Considering the faster development of social security system in cities and towns, which are representative for Chinese social security operation, we select the Chinese cities and towns as the study object in this essay. If we simply sort the resident income in cities and towns into consumption and saving, then the existence of social security system can influence the decision of them and changes the way of individual income. Therefore, the social security effect on resident consumption and saving becomes an important part in macro economic analysis and decision.In the introduction, we explain the issue, significance of the study, as well as the current study status in the nation and abroad, study method and content, and sum up the innovative viewpoints.In Chapter One, we expatiate on the basic theoretical study of social security effect on saving. This part disserts the lifecycle theory, overlapping generations model, and the reallocating theory of social security. The lifecycle theory mainly includes the traditional mode represented by Modigliani, the expanded mode represented by Feldstein, and the behavior cycle mode represented by Taylor and Shefrin. The overlapping generation model includes the simple two-stage model and A-K multiple generation model. The reallocating theory of social security mainly includes viewpoints and conclusion about reallocation and welfares from different economics groups abroad and the "Gradient thinking theory" of Chinese academician Mu Huaizhong. The last part of this chapter, we will discuss the effect from different endowment insurance modes on saving, such as pay-as-you-go system and full-fund sysytem.Chapter Two is the analytic demonstration of the effect from social security on resident saving in Chinese cities and towns. We analyze by statistic with relevant statistic software. In the micro scope, whether the area is of developed economy or not, the salary income effect on the resident saving is evidently positive. In different income level, the effect from income transference to the saving is suffering the degression from positive to negative as the income goes down. The effect from income transference to the saving is distinct in low-income families; it increases the saving action. While to other families, the positive effect is not so distinct.Chapter Three is the Logical analysis of the social security effect on saving. Through questionnaire, we analyze the reasons of the high saving level of Chinese residents, as well as the special saving motivations under the current economic development. This chapter analyzes the "income effect" and "welfares effect" from social security on the saving, and expatiates on the approaches how the social security can affects the saving combining with the saving motivation and income status. The direction and extension of effect in different areas depend on the balance of these two powers.Chapter Four makes some politic suggestion about the social security effect on saving. We think that, the social security system in Chinese cities and towns is still young, therefore, it can not secure efficiently. The realization of the security function lives on to the self-saving accumulation of residents. Meanwhile, Chinese residents have strong saving will which just further the saving degree. Therefore, we need to adjust Chinese social security system to exert its function for residents. We can improve the resident expectation and guide the residents to change the attitude to social security by policies, such as expanding the covered area, upgrading the plan-as-a-whole level, and properly increase the outlay of social security.The last part is conclusion. Since the social security system is not complete, the residents supply the gap by self-security. The resident saving is overwhelming the consumption, so that people in Chinese cities and towns can not enjoy the fruits of economy development. Only through continuous reform and compilation, we can actually guarantee the resident life; increase the consumption, so as to benefit the people.