Research On The Impact Of Social Security On The Allocation Of Household Financial Assets In Our Country

Since the reform and opening up,the per capita disposable income of Chinese residents has increased rapidly,and the financial market has been growing steadily.More and more households begin to pay attention to investment and financial management,and use financial products such as stocks,bonds and funds to maintain and increase the value of their household wealth.But at the same time,our residents have very limited understanding of financial products and financial markets,and most families are still influenced by traditional ideas,holding higher preventive savings.That causes the high proportion of risk-free financial assets in our households,but less participation in risk assets,and the structure of family financial assets allocation presents a single.Based on previous literature,we think that maybe the imperfection of China's social security system caused weak ability of households to withstand future risk shocks,thus increasing Preventive Savings and avoiding possible investment risks in risky financial assets.Since social insurance is the core part of China's social security system,this paper establishes Probit Model,Tobit Model and Poisson Regression Model to test the impact of social insurance on the participation possibility,participation degree and investment diversity of China's family risk financial assets.It also makes a scoring mechanism for family risk,carries out sub-sample regression according to whether or not social insurance is held,and investigates the impact mechanism of social insurance on household financial asset allocation.Through empirical research,this paper finds that the impact of social insurance on household financial asset allocation is significant,among which pension insurance and medical insurance have the most obvious impact on household financial asset allocation;social insurance mainly promotes risky asset investment by hedging the labor income risk and health risk faced by households;and the impact of social insurance on the allocation of financial assets is different between urban and rural households.Accordingly,this paperputs forward some suggestions,such as improving social security system,sounding income growth mechanism and enriching financial instruments,in order to help households rationally allocate assets and promote diversified investment.