The Effect Of Endowment Insurance On Resident Income Redistribution Under The Background Of Aging

In the report of the 19 th National Congress of the Communist Party of China,General Secretary Xi pointed out that in order to achieve high-quality development of China’s economy,one’s own social welfare level is an important aspect,and it is necessary to ensure the simultaneous development of the overall social welfare and economy,so as to better achieve social stability and coordination under the guidance of the new development concept.The realistic problem of China’s aging is becoming more and more prominent with the acceleration of economic development,which not only has an important impact on the employment and structure of China’s labor force,but also makes the burden of old-age insurance payment for young people increasingly heavy,causing income inequality between generations.At the same time,due to the long-term differences in economic development in the eastern,central and western regions of China,the income gap between groups has always existed,which has been widely discussed and concerned by scholars.Personal income tax is an important means to adjust the income gap in our country at present,but there are controversies about the ability of social security,especially the endowment insurance system,to exert the income redistribution effect.As the most important part of China’s social insurance system,the old-age insurance system plays an important role in ensuring the living standards of retirees and reducing poverty.In 2018,the national tax reform proposed that the social security tax should be collected uniformly by the tax authorities,which also reflected its important position in China’s fiscal and taxation system.In this paper,the commonness and difference of the research are found by combing the relevant literatures at home and abroad,which provides theoretical support for the follow-up analysis.Then,by analyzing the current situation of income and expenditure gap of endowment insurance fund in China,the relationship between endowment insurance system and income redistribution under the problem of population aging is found.In the empirical analysis part,using the micro data of China Family Finance Research Center in 2017,firstly,through the current income,pension insurance payment and collection data,through Gini coefficient and MT index,the intragenerational and inter-generational income redistribution effects of the whole country,different regions,income groups and ages are calculated,so as to analyze whether and to what extent the pension insurance payment and collection links have redistribution effects.The calculation results show that the MT index of pension insurance is negative,which will widen the income gap,However,the Gini coefficient has dropped obviously after joining the receiving link.It shows that the endowment insurance system as a whole has a positive effect on income redistribution.Then,from the perspective of lifetime income,on the one hand,it analyzes the redistribution of urban workers’ pension insurance income,and returns the personal lifetime income status through the least square method according to the current wage income,then calculates the lifetime contributions and benefits,and finally gets the personal lifetime net benefits.The results show that the intergenerational redistribution effect of endowment insurance is more obvious,and those born later bear a heavier burden than the previous generation,and the problem of intergenerational inequality is more prominent.On the other hand,this paper also includes the old-age insurance system for urban and rural residents,and finds that the system as a whole will improve a person’s life income,which has a significant positive redistribution effect,At the same time,it finds that the government financial subsidy is an important factor to exert its income redistribution effect.Finally,according to the research conclusions obtained in this paper,the corresponding policy recommendations are put forward.The conclusion shows that the endowment insurance system has its remarkable income redistribution effect,so in the future,it should increase the scale of its fund income and expenditure,optimize the capital structure and make its redistribution effect fully play.At the same time,due to the aging of the population,the old-age insurance system will make the income inequality between generations more and more serious,and the economic burden of the younger generation will increase with time,so it is necessary to optimize and improve the system to alleviate the conflicts between generations.