The Impact Of Government Social Spending On Employment Under The Background Of Population Aging

In the wake of our country economic society going into the " China's New Norm al " era gradually,many social structural problems are increasingly prominent.The m ajor dilemma of the labor market in China is the pressure of employment amount and the obvious contradiction between employment structure under the background of the economy is slowing and the aging population degree is deepening.Whether Govern ment spending can improve the current labor market employment or not has no consi stent conclusion when it under a series of matters that the social trend of the aging po pulation degree deepening,the rising labor costs and the demographic dividend gradu ally disappearing.And therefor when our country is ahead in the new round "five-yea r plan",how to improve the macroeconomic regulation and take control of the effici ency of the government social spending to improve employment is truly a big ordeal f or China government.Firstly,it combs the literature of domestic and foreign about the relationship bet ween the aging population,government social spending and employment,so as to get theory and technology support to the follow-up study.And then analyses the relations between government social spending and employment and the relations between the aging population and employment,which lays the theoretical foundation for the follo w-up empirical study.Furthermore,the paper analyses the current situation of employ ment in our country from two aspects :achievements and challenges.Secondly,This paper extends the overlapping generation model of family company and government.Based on the Chinese 30 provincial panel data,this paper use the different in different(DID)method to empirically analysis the impact that government has effect on the labor employment on the background of aging population.We found that population aging degree of each 1% increase will lead to employment amount decreased by 0.44%,which requires lifting GDP growth to make up 0.59%;At the same time,government finance on education and basic research increased by 1%,to offset population aging on labor negative employment effects were approximately 18% and 16%,but Government finance on social security and health care has significant lag effect in promoting the employment of labor,and the latter is greater than the former lag.Finally,we make the following suggestions for the empirical results: first,We should promote fiscal science and fine management and improve the fiscal expenditure performance.Second,we should increase the proportion of government education and science and technology and avoid myopia that compressed education input in order to solve the problem of aging population;Third,We should promote the combination of the medical and health care,social security and pension services.