Study On The Effect Of New Rural Social Endowment Insurance In China

Since the New Rural Social Pension Program(NRSP)has been enforced,its implementing effect has received much attention.However,it is necessary to evaluate and validate whether this desired effect has been truly achieved.Based on this,data from China Health and Retirement Longitudinal Study(CHARLS)and employing regression discontinuity method and Propensity Score Matching strategy,this paper evaluates the policy effects of China's new rural pension program(NRPP)on income,expenditure,subjective wellbeing and endowment patterns of the rural elderly.This paper is divided into six sections: The first part is an introduction,and it tells about the research backgroud,basic framework,main cotents,research methods and innovation points.The second part describes literature review which includes foreign and domestic relevant research of NRPP,analyzed the inadequacies of the existing literature and impovement of this paper will be done.The third section discussed theoretical analysis of economic effects of NRPP.The fourth part is the macro analysis of NRPP implementation effect.From the overall situation of the country,it is urban and rural coverage and protection level comparative analysis of NRPP.The fifth part is empirical analysis of impacts of NRPP,mainly employing regression discontinuity method and Propensity Score Matching strategy.The sixth part gives conclusions and policy implications.Empirical results show that,the NRPP plays a positive role in increasing rural residents' income,and achieves the expected policy goal.Futher research shows that the new agricultural insurance pension can greatly increase the income level of the low income group,the medium income group of individual income is not obvious effect,the effect in high income group is more weak and not statistically significant.In terms of consumption,the NRPP promotes household consumption of rural residents.Overall,rural residents recognize the NRPP's security function coupled with the preferential policy continues increasing in recent years,they have good expectations for the new agricultural insurance policy and tend to have a stronger consumption intention to basic pension subsidies.In the subjective wellbeing,the NRPP can significantly reduce the level of depression of the elderly,but there is no significant impact on life satisfaction index.In addition,the NRPP effect on endowment patterns results show that,in the living arrangements preference,NRPP reduces the possibility of living with the children,and the possibility of living with children decreased 7.9 percentage points.In terms of intergenerational support amount,the NRPP increases the generation amount of support between the elderly and children,but didn't crow out children's economic support.The increase in the amount of intergenerational support,on the one hand reflects the pension guarantee amount is still limited,and there is no “crowding out” intergenerational support;on the other hand it may be as mentioned in the literature,the elderly and children living with the effect of scale economy can achieve domestic production and consumption,and have a lot of hidden economy support from the children there,but the recessive economic support and care sometimes may not be seen.However,after participating in the new agricultural insurance policy,some elderly people may choose to live alone,will make this part of the implicit intergenerational support dominant,so the children intergenerational support for the elderly may increase the amount of the phenomenon.In terms of pension funding sources,the results of five kinds of matching methods were slightly different,but they show that NRPP has reduced the likelihood of rural elderly pension funds coming from families,by about 6 percentage points.This shows that rural elderly pension funds no longer simply rely on savings or children's supply,but also rely on pension or commercial pension insurance to some extent.In summary,because of the low security level,the influencing effect of NRPP is limited,the sustainability is short.There is a long way to go to actually achieve the sense of security and expending domestic demand of rural residents,needing to continue to seek a social security system which is appropriate to market and economic development,letting the rural elderly enjoy a comfortable retirement.