The Study Of Influencing Factors Of Effective Demand On Rural Old-age Service

In recent years, the process of urbanization and industrialization in China has greatly accelerated the trend of youth labor force mobility from rural to urban area. In addition, the imbalance of population age structure that weaken traditional family providing for the aged, which is caused by china’s one-child policy, make the village retirement problem severer. On the background of dual structure in urban and rural economy, the study of the influencing factor that will impose a great impact on the effective demand of rural old-age service is a practical issue and has core value on the domain of academic study of labor economics.Giving a clear basic conception on the attribute of the studying subject is the first step of on the study frame of applied economics. On this paper, author will give a review on the evolution of the rural old-age security policy since the founding in 1949, and them define the economic attribute of rural old-age service according to the different time period. According to the classic study frame of western economics, rural old-age service can be defined as a personification subject and the influencing factor imposing a great impact on the effective demand of rural old-age service will be study on this hypothesis. Considering the special factors such as human capital, regional development on the key background of dual structure in urban and rural economy, the effective demand of rural old-age service will be classified as monetary demand and life-care demand.In empirical analysis part, the author will perform an empirical variables regression analysis on the multivariate ordered probit model and the date from the questionnaire about the old-age people on rural area of Zhejiang province.The final analysis result shows that economic condition, educational levels and social retirement preference will impose substantive impact on the effective demand of rural old-age service. Therefore, establishing effective evaluation mechanism on the rural old-age service, perfecting the rural old-age service system and taking full advantage of market mechanism and capital market will be some policy suggestions that will release effective demand.