Studying On The Influence Of Farmer’s Individual Social Capital To Their Decision-makings In The New Rural Social Endowment Insurance

As the biggest developing country, china has stepped into an aging society. It is differentfrom other countries that the aging population of our country formed in the background of oldbefore rich and there are severe inversion phenomenon, which is unbalanced in the level ofeconomic development and aging of population between urban and rural areas.At the sametime, it is known to us that the level of economic development in rural area is far below thancity. As a result, it is very urgent to solve the problem of old-age security in rural areas. Asknown to us, establishment and development of the new rural social endowment insurancesystem is a significant way in practice to solve this problem. However, with the furtherdeepening of aging degree and the further enhancing of pension demand in rural area, it hasbecome a new research subject that how to promote the further development of the systemand to improve the level of security. The principle of voluntary participation offers farmers aright to choose,so mobilizing farmers’ enthusiasm to join in the insurance becomes the keyfactor to affect their insured breadth and width.Generally be taken as a result,farmers’ decision was studied to find economic factorsaffecting it in most of past studies.However, in this article, farmers’ decision will be seen as aprocess to analyze how farmer’s individual social capital that is a non-economic factor affectsit. As a result, I will make every effort to put forward constructive suggestions to stimulatefarmers to make out positive decision.In this article, I established analysis frameworks for farmer’s individual social capitaland farmers’ decision-making on insurance through continual literature review and conceptanalysis. As a consequence, farmer’s individual social capital was divided to four parts: thesocial interaction, the social trust, the social reciprocity and the social regulation. Meanwhile,farmers’ participation decision was operated to three dimensions:information search,participation index, the participate behavior. Based on above analysis,This paper will researchseparately how farmer’s individual social capital is acting on information search, participationindex and the participate behavior. Empirical analysis found that relevant variables offarmer’s individual social capital has a positive effect on these three phrases.In this paper, parts of rural residents of Qinhuangdao were chosen in purposive sampling method and random sampling method as respondents to collect relevant data. It is found thatfarmer’s individual social capital has a positive effect on the three phases of decision-makingon insurance by applying binary logistic regression analysis.Specifically, there are fouraspects of mechanism:Firstly, social interaction provides a platform for the communication ofinformation, reduces the cost of information search and have a demonstration effect;Secondly, social trust improve the efficiency and quality of information exchange.Thirdly, it iseffects of social mutual; In the last, it is effects of social regulation.Based on the above analysis, we can obtain such a conclusion that farmer’s individualsocial capital has a positive effect on information search, participation index and theparticipate behavior.Because of farmer’s individual social has a great influence ondecision-making in the new rural social endowment insurance system,we should take somemeasures to provide favorable environment for improving the content of farmer’s socialcapital, for examples, promoting communication among villagers, building rural social creditsystem, maintaining security order in rural communities，enhancing farmers’ sense ofbelonging and honor and so on.