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A Study On The Effect Of Social Security Expenditure On Employment In China

Posted on:2015-12-03Degree:MasterType:Thesis
Country:ChinaCandidate:Y F WangFull Text:PDF
GTID:2296330434452524Subject:Public Finance
Abstract/Summary:PDF Full Text Request
Since the reform and opening up, China’s economy has achieved rapid. development. Now the problems we faced with are not only how to accelerate the economic growth, but people’s livelihood issues."Twelfth Five Year Plan" makes the people’s livelihood issues the point of attention, also makes the social security a hot topic. The social security system can promote social justice, maintain social stability, redistribute national wealth, expand domestic demand, promote consumption and accelerate economic growth. Social security expenditure can promote the reproduction of labor force, improve the living standards of residents, and promote economic development and employment growth; at the same time, the increase of employment opportunities also provides a source of funds for social security. Therefore, social security expenditure and employment mutually influence and promote each other. However, the employment growth does not perform very well for the unsoundness of China’s social security system. In detail, the social security system has many problems, such as regional disparities, the low level of security, overall plan and coverage. With the method of theoretical analysis and empirical analysis, this paper studies the effect of social security expenditure on China’s employment on national and regional basis. Then the paper proposes that perfecting the social insurance system has significant influence on employment growth and reducing the unemployment rate.Firstly, the related literature at home and abroad are analyzed and summarized. Controlling for effective demand, human capital,labor market, the labor decision and production decision making, the paper studies how social security system affects employment. On one hand, social security promotes employment by expanding the effective demand, improving human capital, maintaining the labor market smoothly operating. On the other hand, social security system may have a negative impact on employment through the influence of labor decisions and production decision of firm worker. Secondly, the paper analysis and summarizes the status of expenditure level of social security, the regional coverage rate differences and finds that the social security expenditure level of our country is at a low level compared with the developed countries. According to China’s2006-2011annual expenditure for social security and employment provincial this paper builds a panel model of employment and social security expenditure. After controlling for consumption, gross capital formation, human capital, urbanization rate, per capita GDP, it finds that China’s social security expenditure has a positive effect on the amount of labor force. From the perspective of different regions, there is a positive relationship between the social security and employment in eastern and central regions while no statistically significant influences in the western area. Finally, this paper summarizes that it is necessary to gradually increase the expenditure of social security, improve the level of social security, promote the region coordinated development, expand the coverage of social security, strengthen the function of unemployment insurance in promoting employment, further improve the social security system, promote employment with security and achieve a secure employment.
Keywords/Search Tags:social security expenditure, social insurance, employment, panel data, empirical analysis
PDF Full Text Request
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