Study On The Effect Of Unemployment Insurance Expenditure Level On Re-employment Behavior-A Case Of Liaoning Province

As we all know, unemployment is the inevitable result of economic development. It not only influences the personal life quality of the laborers, but also brings great damage to the social stability and the economic development. How to reduce the unemployment rate has been the important factor for the governments and academics to pay attention to. Based on this, as an important part of the Social Security, the unemployment insurance is born at the right moment. By considering the tasks of guaranteeing the basic livelihood of the unemployed as well as promoting the re-employment,the unemployment insurance has become the most common and effective way for the governments to solve the unemployment problems.Over the years, scholars from both domestic and abroad have studied a lot on the relationship between the unemployment insurance and the re-employment, but the conclusions are different. Some of the scholars think that the expenditures for the unemployment insurance would have a positive impact on the re-employment because it can help to maintain the basic living of the unemployed and ensure the reproduction of the labor. Besides, it can also improve the quality of the labors as well as the efficiency of the re-employment. However, other scholars take the opposite view that the expenditures for the unemployment insurance would make the unemployed become lazier on the other hand and then the enthusiasm for getting a job will be reduced which will hinder the promotion of the re-employment rate.The topic of this paper is selected based on this background. Taking Liaoning Province as the study object, this paper wants to know the impact of the unemployment insurance expenditures in Liaoning Province on the re-employment rate by using empirical analysis and then proposes several policy recommendations to the unemployment insurance expenditures in Liaoning Province. Besides, this paper also further studies the impact of the re-employment training subsidies of the unemployment insurance expenditures on the re-employment which have make the study become more comprehensive. What’s more, the paper may have much more theoretical and practical significances in this way.This paper consists of four parts. First of all, this paper not only defines the important concepts such as the unemployment insurance, the unemployment insurance expenditure level, the re-employment rate and so on which have appeared in the paper clearly but also describes the main theoretical basis. The second part of the paper analyzes the current situation of the unemployment insurance expenditure level of Liaoning Province, the current situation of the re-employment rate and the problems existed in the impact of the unemployment insurance on the re-employment rate in order to provide theoretical and practical basis for the further analysis of this paper. By taking the data from 1994 to 2013 as the study data as well as using the co-integration test and co-integration equation as the measurement methods, the third part studies the impact of the unemployment insurance expenditure level on the re-employment rate and the impact of the re-employment training subsidies on the re-employment rate. The result shows that the unemployment insurance expenditure level has a positive effect on the re- employment rate and the higher re-employment training subsidies make higher re- employment rate.The last part of the paper provides appropriate policy recommendations to the unemployment insurance system in Liaoning Province according to the results of the foregoing analysis and models.