The Effect Of Pension On Family Entrepreneurship Under Different Elderly Family Models

In 2015,premier li keqiang encouraged " Mass entrepreneurship and innovation".5 yeas passed,China's per capita GDP in 2020 hit the ten thousand dollars mark for the first time,it also marks that China is in the center of the middle-income trap right now,the countries in the trap can compete with neither low-income countries in terms of salary,nor rich countries in terms of cutting-edge technology.We should not only face the increasingly serious demographic changes such as aging population and shrinking labor force,but also encourage innovation and entrepreneurship and new technologies.At the same time,we should also pay attention to the effective implementation of social insurance policies such as pension subsidies.The purpose of this paper is to study the demographic structure of elderly families and the effect of social endowment insurance on family entrepreneurship.Based on the data of 2013 Chinese household finance survey(CHFS),this paper focuses on 7681 samples of family with elderly people.Using empirical research methods,we first judge whether the elderly have the ability to live independently according to their physical health,marital status and economic income,and then divide the elderly family into "dependent elderly family" and "independent elderly family" as explanatory variables.The Probit model was established by taking the family entrepreneurship as the explained variable,and the logarithm of the average pension of the elderly as the explanatory variable,as well as the interaction term between the family model and the average pension,so as to study the difference of the contribution of pension to the entrepreneurial promotion of the two family models.Due to the great difference between urban and rural entrepreneurship,we further made the analysis of urban and rural heterogeneity.The empirical analysis results show that,firstly,independent elderly families are more likely to make entrepreneurial decisions than dependent elderly families,because other family members in independent elderly families do not need to spend too much time and energy on taking care of the elderly,so that they can devote themselves more to entrepreneurship.The risk of starting a business is high,and the elderly with the ability to live independently can reduce the worries of the main decision makers in the family and reduce the opportunity cost of starting a business.On the contrary,family members who depend on the elderly need to allocate more energy or money to take care of the elderly in the family,so they lose the time and capital needed to complete the business,and it is more difficult to bear the risk of business failure.However,some dependent elderly families still rely on entrepreneurship.If the annual income and assets of the family are insufficient,the motivation for entrepreneurship may tend to be subsistence entrepreneurship,in an attempt to bring wealth to the family through the success of entrepreneurship.Secondly,pension has a significant positive effect on the entrepreneurship of elderly households,no matter independent or dependent elderly family,no matter rural or urban.If the elderly in the family have pension,the family is more likely to make the decision to start a business.This is because pension has the function of risk spread,to some extent it protects the needs of the elderly in their daily expenses,lightens the financial burden of other family members,and reduces their worries when starting a business.Even if the business fails,the elderly can still get stable pension fund to support the elderly.Thirdly,dependent elderly families need more endowment insurance to carry out entrepreneurial activities than independent elderly families.Because the elderly in independent elderly families have already met the financial independence factor,the existence of pension insurance is more like icing on the cake,and for dependent elderly families,they need pension insurance more desperately to support the family economy and guarantee the source of daily expenses for the elderly.Fourthly,through the further mechanism analysis of the influence of mode on entrepreneurship,it is found that the decisive factor behind the entrepreneurial behavior of independent elderly families is the health and economic independence of the elderly,and the emotional status of the elderly is not the decisive factor.This is because older people in relatively good health do not need other members to spend much time and energy looking after them and can devote more energy to entrepreneurship.And the elderly with income can be self-sufficient.In addition,the healthy and financially independent elderly can spread the risk of family entrepreneurship through their ability of living independently,thus leaving policymakers with no worries.The conclusion of this paper has the following policy Suggestions: Firstly,China should gradually establish a policy system to support the family endowment,and constantly improve the family endowment function,mainly including the tax exemption policy,subsidy policy,flexible employment policy and so on to support the family endowment.Secondly,the society should pay more attention to the elderly families who do not have the ability to live independently,and give them more pension subsidies,medical relief and other benefits.They need these pension subsidy policies more than the elderly families who have the ability to live independently to promote family entrepreneurship.However,how local governments accurately and fairly identify these families and hand out subsidies will be another problem.If China prepares to lead its 1.4 billion people get out of the middle-income trap,it will have to face up to its demographic problems.Under the current demographic structure background,the trend of aging and the decreasing of labor force is inevitable.China's cheap labor market is gradually disappearing,and the demographic dividend will soon come to an end.The only way to compete with higher income countries is through new technology.Science and technology are the primary productive forces,and innovation is the soul of a nation.Only by facing up to demographic changes,solving the problem of providing for the elderly,encouraging entrepreneurship and developing sophisticated technologies can we make the leap to the rich world.