Research On Process Evaluation And Effect Factors Of Provincial Social Security Equalization

As an important part of basic public services, social security plays an importantrole in modern society. And the equalization of social security can promote socialwelfare, protect fairness and justice and safeguard social stability.It has been confirmed that there are unavoidable regional and urban-ruraldifferences of social security, which should have been a mechanism of fairness.Unfortunately, other studies did not define the concept of social security equalization;more importantly, they are lack of systematic assessment of equalization andempirical test of how to achieve this equalization. Therefore, this paper researches theevaluation of inter-provincial social security equalization and tests of factors whichaffecting the development of social security, in order to draw policy recommendationsto achieve that equalization.Based on available literatures of basic public services equalization and socialsecurity differences, we define the concept of social security equalization, and aninter-provincial equalization process evaluation index system is built, to measure thedevelopment level of a social security. Then, we give a presentation of social securityequalization by kernel density estimation and convergence analysis. Finally, we getthe index of inter-provincial social security equalization by Theil index. In order toobtain policy suggestions to promote the equalization of social security, we test threemajor factors of the social security comprehensive development level. Conclusionsare as follows.(1) Based on the concept of social security and basic public servicesequalization, as well as the status quo of China’s social security discrepancy, We holdthe opinion that: the equalization of social security is such a condition that all citizens possess roughly equal social security services whether there are difference of identity,gender, region or urban-rural, and the central meaning of this equalization should beequality of opportunity and equality of consequences under the principle ofuniversality and unity.(2) On the evaluation of social security equalization, we found that the trend ofinter-provincial equalization is positive while social security level significantlyimproving by method of kernel density estimation, and there was a convergence trendof inter-provincial social security development by the method of absoluteconvergence estimation at the national level or regional level. Finally, inter-provincialSocial Security equalization index is calculated based on the method of Theil indexwhich indicates the trend of equalization more clearly.(3) As for the empirical test of social security equalization factors, fiscaldecentralization, governance, economic fundamentals are three major factors to beconsidered in this paper, and we selected seven explanatory as variables in the model:expenditure decentralization, financial self-sufficiency, the government’s publicservice spending preferences, government performance, economic development,urbanization, income level; and social security develop index as explained variable.Countermeasures are proposed to promote the equalization of inter-provincial socialsecurity. Based on such countermeasures and the conclusions of equalizationprocess evaluation, we got four preliminary policy paths. Firstly, adhere to theprinciple of precedence of regional equalization to achieve comprehensive socialsecurity equalization gradually; secondly, grasp the opportunity of public financessystem reform to promote the equalization of social security; thirdly, emphasizes localgovernment supply incentives to promote yardstick competition of social security;finally, establishment and consolidation economic base of social security equalizationdevelopment.