Research On The Influence Of Unemployment Insurance On Household Savings

Due to various uncertainties in life and work,people will inevitably face the risk of unemployment,income and expenditure uncertainty.In order to better cope with future risks and uncertainties and achieve smooth consumption,people continue to increase their precautionary savings.Unemployment insurance,as an important social security,can help people effectively respond to various risks in the future.In the post-epidemic era,the research on unemployment insurance is more important and critical,which should get more attention.This paper through the theory and empirical research and analysis,the first is the theory,introduces the preventive theory,analyzes the relationship between the uncertainty and the preventive savings motive,using the buffer reserve model,using buffer reserve theory of two period model,that consumers in the first period,in the second period in the risk of unemployment,on the basis of meet the maximum utility,guide the unemployment savings,conclusion: residents savings and unemployment subsidies,namely residents savings will decrease with the increase of unemployment subsidies,unemployment insurance can reduce residents preventive savings.Then there is the empirical side,This paper uses the Chinese family tracking survey(Chinese Family Panel Studies,CFPS)for adult data and family data in the database,Organized into the micro balance panel data for 2010,2012,2014,2016 and 2018,Descriptive statistical analysis was performed separately for the total and different population samples,Analyzing its savings rate and insurance participation,Conduct the Multicollinearity test,The individual fixed-effects models were developed for the regression analysis,By analyzing the measurement results,it is found that participating in unemployment insurance and increasing the number of households insured both have significant inhibitory effects on the household savings rate,Then change the computational method of the explained variables for the robustness test,Confirm that the regression results are robust,Finally,the heterogeneity analysis,The samples were grouped from the age dimension of household head,family income,region,and urban and rural areas respectively,Study the effect of unemployment insurance on the savings of different groups separately,it was found that unemployment insurance has a significant inhibitory effect on the savings rate of the middle age group,low income group,families in the eastern central region and urban households.The final conclusion is that the results obtained by the empirical analysis are consistent with the theoretical model.Unemployment insurance does have a significant inhibitory effect on household savings.Participating in unemployment insurance can reduce the uncertainty and risk in the future,promote people’s consumption expenditure,and thus reduce the precautionary savings.Finally,the corresponding policy suggestions are put forward: to improve the unemployment insurance system,expand the coverage of unemployment insurance,increase the publicity of unemployment insurance,improve the level of unemployment insurance benefits,and effectively promote the reemployment of employees.