A Study On The Impact Of Urban And Rural Social Security System On Household Consumption Expenditure In China

Since reform and opening-up, our level and quality of life have greatly improved. But the dual structure in urban and rural economy has not yet been changed, and urban and rural economic unbalanced development have expanded the residents’ income gap trend between urban and rural. Our country has step into the country ranks with the largest urban and rural income gap, urban and rural consumption gap is widening, and residents effective demand is inadequate, restricts the healthy and sustainable development of our country’s economic.The social security system as a regulator of the income distribution has been established, developed, and improved.However, the level of social security in our country is still not high, coverage of social security is narrow, differences between urban and rural is high, and other issues. Many scholars have studied on the relationship between social security and consumption, but the conclusion has the very big difference, so the further research on social security is urgent and necessary.First of all, this paper summarizes the western classical consumption theory, studies the effect of the social security system for residents’ consumption in theory. Secondly, on the one hand, because of our country social security system "fragmentation" serious, this paper summarized compares the status quo of urban and rural social insurance, social relief and social welfare. Because special care and placement system entitles in view of the special groups, this paper does not do contrast. By comparing, found that urban and rural social security system have large differences. On the other hand, this paper analyzes the situation of urban and rural residents’ consumption in China, the ratio of consumption to generally low in our country, countryside more serious. On the basis of theoretical analysis, this paper chooses the panel data of 2002-2013 in 31 provinces and cities, for urban social security system and rural social security system in our country the empirical analysis on the influence of consumer spending, found that spending on social security for urban and rural residents’ consumption level has a positive role in promoting, and increasing public expenditures will be conducive to stimulate consumption. Comparing the results of analysis of urban and rural, rural social security system is relatively backward, so failed to fully arouse the stimulating effect of the social security expenditure on consumer spending. In order to utilize the consumption effect of the social security system in the greatest degree, at the end of the article, put forward some advices for building a social security system of urban-rural integration. Thought to establish the social security system of urban and rural integration is to stimulate consumer demand the necessity of choice, should speed up the reform of dual household registration system, strengthen the construction of the integration of the system, and establish a diversified social security mode.