Research On The Social Welfare Effect Of Pension Insurance Contribution Ratio Change

Under the background of rapid economic development,China is rapidly stepping into the aging society.For the whole society,the aging degree is deepening,which means that the social burden is increasing,the working-age population is decreasing,and the social security fund cannot be paid out.According to China's current basic national conditions,China's pension system for urban workers is a unique combination of unified accounting system.From the perspective of enterprises,the formulation of pension insurance contribution ratio will affect the labor cost and output of enterprises,while improving the production efficiency of enterprises is the key to improving the quality of economic growth.From the personal point of view,the endowment insurance contribution will affect consumers' savings and consumption decisions,and then affect personal welfare.In his report to the 19 th national congress of the communist party of China(CPC),xi jinping pointed out that "we need to improve the basic old-age insurance system for urban workers",and that the old-age insurance payment system has become a topic of concern to individuals,enterprises and even the society.To sum up,establishing a reasonable endowment insurance system is the inevitable choice to implement the spirit of the party conference,realize a well-off society in an all-round way and promote social welfare.Based on the current situation of the endowment insurance payment system under the unified accounting system in China,this paper aims to establish an overlapping generation model(OLG model)and comprehensively analyze the impact of China's fee reduction policy from the perspective of economics.Specifically,from the perspective of enterprises and individuals,the individual behavior and enterprise behavior under the current endowment insurance contribution ratio are analyzed,and the parametric expression of the variables studied is obtained by considering the government decision and market equilibrium.Then,through comparative static analysis,it preliminarily illustrates the impact of the reduction of endowment insurance contribution ratio on the per capita capital,per capita output,per capita production factor price,individual consumption and saving behavior and individual utility of enterprises.Finally,the social welfare function is established to explain the influence of the change of endowment insurance contribution ratio on social welfare.In data simulation section,set the parameters of the actual value,such as technical progress,the output elasticity of material capital,personal utility discount factor,enterprise utility discount factor,etc.,combining with the parameter Settings,numerical simulation,calculate the optimal endowment insurance expends,respectively study enterprise contribution rate of change of material capital stock per capita,per capita consumption demand and the impact of social welfare,and the third part is the mutual verification;In addition,different scenarios with different levels of economic development and different stages of population growth were set up to simulate and interpret the results.Finally,sensitivity analysis was performed.The results show that,for enterprises,reducing the payment rate will increase their capital labor ratio and per capita output,thus increasing their production efficiency.For the price of factors of production,reducing the rate of enterprise contribution will reduce the interest rate and increase wages.For consumers,lowering the enterprise contribution rate will increase their wages,so as to increase their savings,current consumption and future consumption.For social welfare,reducing the enterprise contribution rate will eventually lead to the increase of social welfare.At the same time,through different scenario simulation,it is found that under different economic development degree and different population growth rate,the optimal endowment insurance contribution ratio and its impact on social welfare will be different.Finally,the sensitivity analysis shows that when exogenous parameters such as capital income share,individual discount factor,social discount factor and population growth rate change,the optimal social pooling contribution rate will change accordingly.Based on this,this paper puts forward some Suggestions for the implementation of the policy: 1.Under the current contribution ratio,appropriately reduce the enterprise contribution rate,and at the same time,increase the real account rate of individual accounts,so as to effectively expand domestic demand,reduce the endowment insurance payment burden of enterprises,and thereby promote economic growth and social welfare.2.Different regions can formulate the proportion of payment according to local conditions in combination with specific conditions.The more developed the economy is,the more room for enterprises to reduce fees.3.Implement population easing policy cautiously to reduce the negative impact of population growth on pension benefits and domestic demand;4.By changing the industrial structure and increasing the elasticity of capital output,we can improve the return on capital in retirement and reduce the dependence of individuals on the demand of pension.5.Relevant departments should actively negotiate the investment management plan of basic pension,improve the fund value preservation and appreciation rate of the national pooling basic pension,and improve the sustainable development of the system;6.Strengthen the sense of responsibility of the government and promote the fairness of the system.