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No Trust, No Trust: An Analysis Of Official Trust And New Rural Insurance Enrollment Decision

Posted on:2021-08-15Degree:MasterType:Thesis
Country:ChinaCandidate:S ChenFull Text:PDF
GTID:2516306302485404Subject:Insurance
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The new rural Pension Scheme(NRPS)has been implemented nationwide for more than ten years,but the participation rate and the level of participation premium are both low,which cause it difficult to release the dividends of the NRPS.This paper examined the impact of people's trust to government officials on NRPS's participation decisions using panel data from the latest three terms of Chinese Family Panel Studies(CFPS).There are two main reasons why trust in government officials affects people's decision to participate in the NRPS.Firstly,the group of government officials,especially grassroots officials,is the implementer of the policy.Government officials play a role in the process of reaching the masses.They face the masses,promote the policies,including the introduction of policies,and the launch of lectures on popularizing policy knowledge to assist the masses in handling insurance matters.Therefore,government officials are deeply involved in the promotion and processing of new farm insurance,and the level of people's trust in government officials will affect their insurance decision to a certain extent;Secondly,the old rural Pension Scheme(ORP)was suspended by the state before,and a similar new system was introduced later.The failure of the ORP policy itself has reduced people's trust in the government.To a certain extent,it will be linked to people's trust in the government,and the level of trust in government officials will reflect people's trust in the government to a certain extent.we used the lag of trust and the state of public security around the community as instrumental variable of trust to solve the potential endogenous problems,and obtained consistent results.Studies have shown that for each standard deviation increase in the trust score of government officials,the probability of villagers participating in the NRPS increases by about 8%,which is equivalent to 15% of the current participation rate.This article further discusses the possible influence mechanism of official trust on NRPS participation decision.By comparison,it is found that institutional trust,rather than general social trust,has the effect of promoting participation in NRPS.The impact of official trust on NRPS participation decision is mainly realized by affecting areas with weaker clan culture.This study shows that improving the level of government's scientific decision-making and governance,as well as officials' ability to execute and manage,and thus increasing the trust to public officials,which will help promote the broad participation on public projects such as NRPS.In this study,we first perform an internal consistency test on the key explanatory variable.The test results show that among respondents who have suffered unfair treatment by the government,had conflicts with government officials,suffered delays in government affairs,and received unreasonable fees from the government,the average trust score of officials was less than 4 points,indicating that they had shown government confidence,the average trust score matches the experience,so the official trust we have selected has a better Internal consistency.In Chapter 4,we found that the lagging period of official trust still positively promoted the participation of the new rural insurance at a significant level of 1%;compared with low trust levels,individuals with medium and high trust levels The possibility of enrollment will increase by 2 percentage points.Compared with the OLS results,the coefficient of official trust increased in the two-stage least-squares model of instrumental variables,indicating that missing variables caused OLS regression to underestimate the effect of official trust on insurance policy decisions.At the same time,our research shows that it is institutional trust,not general trust,that affects the decisionmaking of NRPS.Therefore,if the public's trust in the system,especially the trust of officials,can be increased,the level of new rural insurance's participation will be The greater potential for improvement can further unlock institutional dividends.In addition,we conducted a heterogeneity test on age segments.The results of the study show that for groups under 30 and over 60,the level of trust in government officials has no significant impact on their insurance decision;for 30-60 For age groups,the increase in official trust is conducive to increasing their probability of enrollment.Therefore,in the long run,if the trust of government officials in groups under 30 will be increased from now on,the probability of participating in the new rural insurance will be significantly improved after they reach 30.Then,this article attempts to explore the factors that affect the participation of groups over 60 and under 30 from the perspective of demonstration effect and learning effect.The demonstration effect is characterized by the proportion of community pensioners in the total number of 60-year-old individuals and the number of insured and pensioners in the total number of 60-year-old individuals.The learning effect is described by the proportion of community participation in NRPS.Studies show that for groups over 60 years of age,the demonstration effect can greatly increase the group's probability of enrolling,that is,the higher the proportion of people in the community who are over 60 years old,receiving pensions or participating in insurance,the greater their participation rate.The tendency of insurance will also be higher.For groups under the age of 30,the demonstration effect also has a significant impact on their insurance decision at a certain level.For groups that do not meet the receiving conditions(groups under 60 years of age),the significant positive effect of the learning effect has a greater impact on enrollment.The research in this paper also finds that in areas where the clan culture is weak,official trust has played a positive role,significantly promoting villagers' participation in insurance and the choice of higher payment grades.And more than 80% of the villages in the sample do not have clan ancestral halls.It can be seen that the impact of official trust on insurance participation decisions is mainly achieved through the impact on areas with weaker clan culture.Finally,we perform robustness tests from explanatory variables and fitted models,both of which can prove the robustness of the empirical results of this paper.
Keywords/Search Tags:NRPS, Pension level, Trust in government officials, Trust in institutional, Instrument variable
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