The Impact Of Social Security On Household Consumption

The social security system is also known as the "safety net","shock absorber" and "stabilizer" of the society.Its importance has been recognized worldwide.By adjusting the income level between different groups,reducing the gap between the rich and the poor,pulling the domestic demand,and thus improving the consumption level of the residents,the social security system is of great significance to the promotion of economic growth.Keynes,a representative of many economists,shows that social security system helps to improve household consumption.At present,our country is still in the development period of the social security system,and the social security system is also set up and perfected in an orderly way.According to the current actual situation in China,the relationship between social security and residents' consumption is studied and the mechanism of the interaction between the two is explored,which will improve the social security system to promote the consumption of the residents.And social equity is of great significance.This paper first analyzes the current situation of social security and consumption in China,explores the typical facts of social security and consumption in China from the macro data,and understands the current status of the development of social security system and the consumption of residents,and then studies the relationship between social security and residents' consumption from the theoretical level.On the basis of Keynes' s theory of effective demand,life cycle theory(traditional life cycle theory,extended life cycle theory and behavior life cycle theory)and preventive savings theory,the mechanism of the interaction between the two and the effect of social protection on the consumption of residents is discussed.The four aspects are:(1)the effect of income growth: social security promotes consumption growth by raising household income level;(2)income distribution effect: social security can regulate income levels among different groups,reduce income gap,increase the consumption ability of low-income groups,promote consumption growth;(3)uncertainty Effect: social security,by reducing the uncertainty faced by households,promotes household consumption confidence and promotes consumption;(4)retirement effect: social security encourages people to retire ahead of time so as to squeeze out current consumption.From the above research,we can find that the relationship between social security and consumption is not positively promoted,and the social security system will also inhibit residents' consumption.In order to further clarify the relationship between social security and residents' consumption,this paper proves that the impact of social security on family consumption is significant through the analysis of the empirical model.After the interference of other factors,the consumption of social security families and no social security families has significant differences.Social security inhibits the consumption of residents.Considering the impact of the economic development level on regional social security and the two yuan structure of urban and rural areas in China,this paper shows that there are differences in the impact of social security in different regions.The empirical results show that there are three different matching formulations in the nearest neighbor,half path matching and nuclear matching.The same conclusion is drawn under the law.In the eastern region with high level of economic development,social security has a restraining effect on the consumption of residents.On the contrary,in the western and central regions of the underdeveloped economic development level,we have come to the opposite conclusion.Social security has promoted the growth of household consumption,but this kind of shadow is a shadow.The impact of the social security system on the consumption of rural residents is not significant,but the social security system in urban areas has significantly inhibited the consumption of residents.This is contrary to the current research on social security and the mainstream of residents' consumption.The reasons for this result may be:(1)there is a retirement effect;(2)the individual payment project in the social security system reduces the disposable income of the household;(3)the influence of the traditional concept;(4)the social security system is not yet perfect.Finally,based on the conclusions of this study,the corresponding countermeasures and suggestions are given.