Social Insurance For Urban Residents' Consumption Impact

Since the1990s, China has been "pay attention to investment and exports, make little of consumption", household consumption appears weak, consumption rate is in a falling state, it makes the three demand long-term imbalance in our country. With the outbreak of the international financial crisis, because the influence of the changing situation both at home and abroad, our country began to gradually focus on expanding domestic demand, expanding domestic demand is bound to promote consumption, social security as one of the important ways to promote consumer spending has been raised to an unprecedented importance. Social security is "inner stabilizer" of sustainable development of economy and society, and social insurance is the core, Suzhou as one of the developed areas in China, after years of exploration and practice, has preliminarily established through various channels to raise social insurance fund and socially management service mode of the social insurance system. Although the mechanism of the influence of the social insurance for urban resident consumption is complex, it still has great research value. At present our country is in a critical period of social security reform, based on the research of the Suzhou data, the empirical analysis of the influence of the social insurance for urban resident consumption has important theoretical and realistic significance.Based on the above situation, this paper firstly reviews the related literature at home and abroad, and explains the absolute income hypothesis, life cycle hypothesis theory. Secondly, taking Suzhou social insurance people and rate, per capita social security expenditure measure and analyze social insurance of urban residents in Suzhou, and dynamically compared with the whole country and Jiangsu province, from the coverage of social insurance and social insurance fund expenditure analyze Suzhou social insurance problems; from consumption, consumption structure, consumption level describe Suzhou urban residents consumption status, and from per capita consumption level, consumption structure, consumption tendency, consumption gap and the contribution rate analyze problems of Suzhou urban residents’ consumption. The main reasons include the initial distribution of national income, social security redistribution, precautionary savings, the expected pressure and the consumer concept.On this basis, using the extended life cycle model, taking the per capita consumption of urban residents in Suzhou as the dependent variable, per capita initiative income, per capita social insurance income, social insurance rate as independent variables, construct the multivariate linear regression model of social insurance and consumption of urban residents in Suzhou. Through the OLS analysis to draw the following conclusion:social insurance and consumption of urban residents is positive, perfect social insurance system is to promote the consumption expenditure of urban residents, the social insurance system is not perfect, inhibits the consumption expenditure of urban residents; endowment insurance and medical insurance of Suzhou city have different influence on urban residential consumption, influence degree of medical insurance for urban residents consumption is greater than the endowment insurance.The paper proposes the following policy recommendations:first, improve the income level, enhance consumption capacity. Increase the employment promotion efforts, establish and improve the workers’ own businesses and flexible employment mechanism; perfect the mechanism of wage growth to improve the income level, enhance consumption capacity. Second, narrow the income gap, expand the scale of consumption. Improve the wage income in the initial distribution ratio; expand the proportion of middle-income groups, improve the income of low-income groups, narrow the income gap, expand the scale of consumption. Third, improve the social security system to encourage immediate consumption. Steadily improve the pension coverage ratio, enlarge the coverage of social insurance, increase the intensity of fiscal spending on social insurance, Stepwise refinement of various social insurance programs. Strengthen the social security fund operation, improve the psychological expectations, encourage immediate consumption. Fourth, change the consumption concept, guide consumption behavior. Actively promote the way of modern consumption, such as consumer credit, improve the social credit system, change the concept of paying attention to savings and making little to consumption of residents, improve social insurance propaganda, improve the consciousness of social insurance.