A Study Of The Effect On New Rural Society Endowment Insurance Program

In order to cope with the international financial crisis and expand domestic consumption demand, The new rural Society Endowment Insurance Program start the implementation of the pilot in the country in 2009, and the pilot areas including 320 counties. Just three years, the new agriculture insurance benefit number increased year by year, The national wide social security system basically take shape by 2012. In the process of constructing socialist harmonious society, it is one of the important tasks to establish social security system covering urban and rural residents, China has put it in the twelfth five year plan. The principle of the new rural Society Endowment Insurance Program are low level, broad coverage, elastic and sustainability, The goal of this policy is as follows:to expand domestic demand, especially consumption demand In rural areas, and to realize "a sense of security" and family harmony, to increase the income of residents. Has this policy improved the way people live? Whether the policy to increase the farmers’ income and consumption? Whether the policy has the influence on farmers’ labor supply behavior?In this paper, we present a very simple model to analysis the treatment effect and the anticipation effect of the pension system.we evaluate the effect of new agricultural insurance policy from the macroscopic and microscopic angles. Macro analysis including the new agricultural insurance coverage and real level of treatment, the results are as follows:it covers with more and more people, the social security level is low and is lack of measures. Microscopic analysis including beneficiaries and their family, Using data from china health and retirement longitudinal study (CHARLS) and employing difference-in-differences strategy, this paper evaluates the policy effects of china’s new rural pension program on income, expenditure, labor supply and mental health.Empirical results show that, pension benefits of the new rural Society Endowment Insurance Program significantly increased personal income, improve substantially mental health, and marginally increased household expenditure and decreased labor supply, we find that the mental health of elderly adults in the program is significantly improved, as their score on the Geriatric Depression Scale decreases by 10%. We also find that the proportion of treated individuals doing paid work is reduced by 14.5%, with most of these people switching from their former activities to work in family businesses; treated households show higher levels of consumption expenditures(on average, an increase of 15%)...