The Influence Of Mental Account On Rural Residents Participate The Endowment Insuance

In 2000,China formally entered the aging countries,and the proportion of elderly people over 60 years old gradually increased.With the rapid development of urbanization and industrialization in China,many young people in rural areas have left the countryside and go to urban,the old people without ability and labor force have stayed in rural areas,the aging of rural areas more serious.With the development of economy,the self-sufficient way of supporting the aged becomes weak,which intensifies the rural pension problem.In order to guarantee the elderly life in rural,China has abolished the old rural pension insurance and implemented a new type of pension insurance for rural residents.The policy experiment began in 2009,and after three years efforts,the new rural pension insurance was covered the whole country.However,the participation rate of rural residents is not high,the payment level of the insured is very low,pension of income is difficult to support life.Therefore,it is great significance to study the influencing factors of rural residents participating in endowment insurance and to improve their enthusiasm for participating in it.According to the theory of mental account,the paper briefly introduces three characteristics of psychological account.According to previous scholars on the research of the endowment insurance and mental account theory,in the study of the influence factors of farmers add mental accounts factors,analyzes the forming process of the psychological account of rural residents’ income,and expounds the influence mechanism of the mental account on farmers’ participation in insurance.Based on the nonsubstitutability of mental account,this paper puts forward the hypothesis and makes an empirical analysis.In this paper,the data source is from China Household Finance Survey(CHFS)in 2013,taking rural families in the whole country as the research object,collects 6,563 eligible household data.By sorting out the survey data and combining with relevant literature,we classified farmers’family income and savings accounts.According to the different income sources,the income is divided into four psychological accounts:agricultural income account,labor salary income account,government transfer income account and investment income account.According to the different ways of saving,savings are divided into current deposit account and time deposit account.And then we added demographic characteristics,knowledge of the pension insurance and other factors.First,the paper explores the influence of the different income mental account and saving mental account for the rural residents participate the endowment insurance by logistic model,secondly explores the influence of income and savings for the rural residents participate the endowment insurance by logistic model,the results show that:(1)the farmer’s mental account exists,different sources of income account will have different effect for participating the endowment insurance,different ways of saving also can produce different effects for participating the endowment insurance.(2)in terms of income,the increase of income will promote the increase of the participation rate.Families with agricultural income and government transfer income have significant positive impact on the participation rate.Therefore,the families with agricultural income and government transfer income,the increase of the income of these two account will promote the increase of the participation rate.(3)in terms of savings,the increase of saving will promote the increase of the participation rate,the families which have demand deposits account have significant positive impact on the participation rate,and the families which have fixed deposit account have no significant impact on the rate of endowment insurance,therefore,if we can let the farmers get into the habit to deposits,open up their demand deposit of mental account can promote the rate of increase.(4)the collection and transfer of relevant information will significantly increase the participation rate,it will be significantly positive impact on the participation rate which families with village cadres and those who concern about the financial and economic information.After that,this paper puts forward corresponding policy suggestions according to these results:(1)Improve farmers’ agricultural income,promote the growth of farmers’ agricultural income.Agricultural income is the main source of income for rural families.(2)increase government subsidies.Government’s subsidy is the mental account of extra income,and the increase of government subsidy can effectively promote the participation of rural residents in the endowment insurance.(3)Expansion of financial development in rural areas,on the one hand,the government should actively guide banks open in rural,on the other hand,the government should encourage rural residents current deposits,Organize professionals to explain the role of deposits,guide the rural family open demand deposit account,To better respond to emergencies.(4)Popularize financial knowledge,strengthen the information spreading in rural areas,let the villagers better understand the endowment insurance,and faster to get relevant information.