Study On The Income Redistribution Effect Of The Rural Pension Insurance System In Zhejiang Province

Since the pension insurance system has been established, the debate of its income redistribution effect has never stopped in the field of social security research. On the one hand, China’s rural social pension insurance system from scratch plays a role in the protection of rural insurance groups in the old age. Especially in 2009, since the beginning of the new agricultural insurance, the number of the insured and the level of protection of the system increases and the protection level of the system has been improved year by year. On the other hand, the income gap between urban and rural residents is still serious. In this background, we couldn’t help thinking about the current rural social pension insurance system can increase the income level of the rural participants, and play a positive role in the redistribution of income gap between urban and rural residents, whether the system can highlight the social security fair connotation on the basis of efficiency. To analyze and answer these questions is the main starting point of this article.In view of the flexibility of the rural social pension insurance system and the differences between the regions, this paper use the net income model of rural social pension insurance system proposed by Professor Mu to estimate the net income of rural social pension insurance system in 11 cities in Zhejiang province and the redistribution effect of rural social insurance. It is found that the rural social pension insurance system can have a positive effect on the urban-rural income gap, but there are also regional differences. The effect of urban and rural income redistribution from high to low in turn is: Ningbo, Hangzhou, Lishui, Quzhou, Wenzhou, Jinhua, Shaoxing, Huzhou, Zhoushan, Taizhou, Jiaxing. On the basis of this analysis, we find that the level of basic pension has positive effect on narrowing the gap between the urban and rural areas.The higher fundamental annuities, the more pension the rural residents can get when they retire. The greater net income they can receive, the old-age security function and the urban and rural income redistribution effect of the rural social pension insurance system is more prominent. In addition, the effect of the payment of the premium has a regressive effect on the urban and rural redistribution. The rural social endowment insurance in 11 cities of Zhejiang province is reduced with the increase of pay grade. The higher the premium, the lower the net profit of the system. Due to a large portion of the net income obtained from government subsidies, high contribution rate of low government subsidy rate not only reduces the net income of the insured, but also affects its urban and rural income redistribution effect. This conclusion could be a useful reference for the improvement of rural social pension insurance system in Zhejiang province. After further analysis on the current rural social pension insurance system in Zhejiang province, it found the imbalanced government responsibility, the lack of government subsidies incentive effects, the limitations of fundamental annuities level, the low level of fund management problems have restricted the rural social pension insurance system’s operating efficiency and the protection effect. Therefore, on the basis of the adjustment of fiscal responsibility at all levels, it should enhance the incentive mechanism of government subsidies, properly raise the level of basic annuities and explore more effective ways of fund management to reduce the security and income gap between urban and rural areas and better balance the fairness and efficiency of social security system.In detail, this paper has five chapters. The first chapter mainly introduces the research background, theoretical significance and practical significance of this paper and reviews the endowment insurance system redistribution function from the the perspective of theoretical research and empirical research and it points out the innovation and shortcomings of the article; The second chapter mainly analyzes the urban-rural income gap in Zhejiang province and the evolution of rural social pension insurance in Zhejiang province; In the third chapter, the paper mainly introduces the net income model and the calculation method of the urban and rural income redistribution effect and analyzes the effect of the redistribution of urban and rural income in 11 cities of Zhejiang province; The fourth chapter mainly analyzes the unreasonable place of rural social pension insurance system from the angles of government subsidies and funds management level in Zhejiang province; On the basis of problem analysis, the fifth chapter put forward the corresponding suggestions to perfect the rural social pension insurance system and improve the urban and rural income redistribution effect in zhejiang province and based on the research conclusions, it prospects the future research direction.