Research On The Impact Of Social Security System To The Economy In France

As one of the typical welfare states in Western Europe, France has established acharacterized social security system since the end of World War II. Compared withother European countries, the French social security system combines the features ofMutual Assistance Type and State Leading Type. Moreover, it covers a wide range ofaspects, offers a relatively high payment, as well as benefits many people, which hada positive effect on the development of economy in France, which ensures thestandard of living of people. In recent years, however, the problem of social securitysystem advocates, the expense of social security system in France is excessively highcompared to the development; it also suffers from a great deficit in the social securityfund. The excessively high level of social security expense aggravated theunemployment rate and reduced the invest rate, which has brought some negativeimpacts aside from the positive ones mentioned. Aiming at solving the problems, theFrench gouvernment is seeking a way to take the reform and change the situation. Byanticipating and analysing the reforming trend, we could benefit the Chinese socialsecurity system, which is also on its way to reform.Firstly, the general situation of modern social security system in France will beintroduced, the general characteristics will be outlined; based on that, the model willbe built in order to analyze the correlation and regression between level of socialsecurity expense and the macroeconomic variables, such as GDP, unemployment,domestic consummation, domestic savings and domestic investment, etc.. Then, theeconomic impact on the current situation in France will be discussed. Moreover, baseon the qualitative analysis, the problems social security system which France is nowfacing will be analyzed, the orientation of reforming will be thus inferred. Throughthe analysis of the social security system in France in this paper, we hope to bringsome enlightenment to construct and perfect the Chinese characterized social securitysystem in our country.