Research On The Effect Of Pension Income On Urban Household Consumption

As an important measure to solve the problem of supporting old people,endowment insurance system ensures old people’s life and reduces youth’s savings for later life.In recent years,China’s economy maintained steady growth and household income increased year by year,but our country’s residents’ consumption level still lay in low level while compared with some same type countries.Therefore,to study the effect of endowment insurance for residents’ consumption is of great significance.This paper combed the Keynes Consumption Function,Life Cycle Hypothesis of Consumption,Precautionary Savings Theory and so on,based on China Health and Retirement Longitudinal Study(CHARLS)data released in November 2015,on the basis of the theoretical model to establish Tobit regression model,to analyze the effect of endowment insurance on our country urban household consumption.The study found that the endowment insurance,age and health level,annual family income and family size major variables on the sample has a significant impact on family consumption.Different pension income,government institutions pension and basic old-age insurance for enterprise employees are significantly improve urban household consumption,and the family daily spending and have a significant role in promoting education entertainment spending,and the basic old-age insurance for enterprise employees only for family daily spending a significant role in promoting.Residents of urban and rural social endowment insurance,enterprise annuity,commercial endowment insurance such as endowment insurance project no significant impact on household consumption.In this paper,the study further verified the pension income affect household consumption,the empirical results confirmed the endowment insurance to promote the residents’ consumption.Relatively,multi-level old-age security system in our country at present is not yet perfect,based on the empirical results,puts forward some Suggestions of perfecting the multi-level old-age security system,in order to realize the endowment insurance and help boost consumer spending measures effectively.Compared with the existing research results,this article examines the different levels of endowment insurance’s influence on consumption,have adopted a nationwide survey in 2015.the latest CHARLS data,the research conclusion is more robustness and timeliness.