Social Security, Human Capital Investment And Economic Growth

The paper discusses the effects of age insurance system, human capital investment and economic growth in China. The author review the history of endowment insurance, the economic theory foundation and the practice in China and find that the relationship between age insurance system and the economic growth can be analyzed from two aspects:physical capital and human capital. The author uses the panel data from 2000 to 2009 of 31 regions in China to finish the quantitative analysis. Measuring results show that China's current endowment insurance system has "pushed effect" for urban residents'human capital investment, pension payment increase will promote residents increase the investment of human capital. The negative correlation between China's local pension tax rates and economic growth was not significant, our economic growth major contributions or from residents savings rate and population growth. Combining theoretical and empirical studies, this paper has a conclusion:in China the pension system is still given priority to PAYG.