The Influence Of Chinese Endowment Insurance On Famliy's Consumer Expenditure

The Chinese economy has experienced rapid development since the reform and opening policy,but the domestic consumption level has been relatively sluggish.The family high savings rate and population aging is two factors that restricts coming up of consumption in China.This paper focuses on how Chinese pension insurance system raises domestic famlies current consumption level,especially for famlies of Middle-aged and elderly.Firstly,this paper gets three kinds of results of household consumption expenditure through refurring to Chinese and foreign literature,and then summarizes the main theoretical basis of the impact of consumption level,After that,according to the theoretical basis and literature lifting,the paper puts forward the question-how basic endowment insurance or commercial endowment insurance affects Chinese household consumption expenditure.This study found that,participating in basic endowment insurance has significant positive effect on food and medical consumption expenditure,but not significant on the daily and clothing consumption expenditure.Then,based on the classification of rural households and urban households,the paper found that participating in basic endowment insurance has positive effect on the food consumption expenditure in rural households,and has positive effect on medical consumption expenditure of urban households.The impact of the basic endowment insurance on the consumption of food,daily,clothing and medical is not significant in the sample of households that have basic endowment insurance.Participating in the basic endowment insurance has significant positive effect on food and medical consumption expenditure Over the past year income of 1001-9999 yuan for low-income families which earned 1001-9999 income in the last year.Next,participating in commercial endowment insurance has significant and positive effect on medical and daily consumption expenditure,has significant positive impact on the daily and medical expenditure in rural households and has significant positive impact on the consumption expenditure in urban households.The results show that there are three main problems in current endowment insurance system.Firstly,the level of protection needs to be improved,secondly,the difference between urban and rural areas needs to be narrowed,and the lastly,commercial endowment insurance needs to be further promoted.Finally,this paper puts forward several policy suggestions against three main problems above.Our government should promote the national unity of the endowment insurance system,and realize the diversification of endowment insurance.Also commercial endowment insurance should play a fully important role in protecting Chinese households.