An Empirical Analysis Of The Impact Of Farmers’ Participation In Basic Endowment Insurance For Urban And Rural Residents On Welfare

In the context of poverty alleviation and rural revitalization,improving the welfare of farmers has always been one of the basic task of the Party and the state,and consumption is a direct indicator of farmers’ welfare.As we all know,consumption is one of the three stimulation contributing to the growth of our national economy.Consumption studies on rural residents with a large population and potential for consumption cannot be ignored.Besides,with the people’s yearning for a better life,the study on consumption upgrade of rural residents is not only necessary but also of great importance.However,as our aging process continues to intensify,the current situation of rural aging is becoming more and more serious,and the traditional elder-caring model becomes unsustainable.As a short-sighted group,farmers will inevitably reduce consumption and downgrade consumption in the face of future uncertainty.The basic endowment insurance for urban and rural residents is a universal and fair social security system with welfare.Its purpose is to guarantee the basic life of the urban and rural residents.However,at the same time,it is not uncommon for farmers to have a low payment grade or a low enthusiasm for insurance.Based on the above background,we know that the basic endowment insurance for urban and rural residents is an important part of our rural social security.Therefore,during the connecting period of targeted poverty alleviation and rural revitalization,it is of great practical significance to explore whether the basic endowment insurance for urban and rural residents can promote the upgrading of farmers’ consumption and improve their welfare.Through references,this article uses Keynesian consumption theory,consumer behavior theory under uncertainty,life cycle hypothesis,and lasting income theory as theoretical basis for mechanism analysis.Taking into account the feasibility of the research,this paper uses the micro survey data on the participation of the basic endowment insurance for urban and rural residents of farmers in Yunyang District,Shiyan City,Hubei Province to conduct an empirical analysis.First,this paper uses the Ologit regression model to verify the impact of farmers’ grade in the basic endowment insurance for urban and rural residents on the objective economic welfare of consumption upgrade,and on this basis,analyzes the marginal effect;secondly,the OLS model and the Oprobit model and the method of variable substitution are used to test the robustness.Furthermore,the method of instrumental variables is used to verify the endogeneity problem.Based on practical problems,theoretical analysis,and empirical analysis results,this article puts forward concrete and feasible policy recommendations.The four research conclusions of this article are as follows:(1)The insured grade has a significant positive correlation with farmers’ consumption upgrade,but the effect is limited;(2)Before grade 6(insured premium grade of 600 yuan),the insured grade has an increasing marginal effect on promoting farmers’ consumption upgrade;after level 6,the insured level has a diminishing marginal effect on promoting farmers’ consumption upgrade;(3)education level,per capita income of family,perception of pension insurance,life satisfaction,purchase of commercial pension insurance,all of them have a significant positive correlation with the promotion of farmers’ consumption upgrade;(4)the interviewed farmers own these common characters: low level of the basic endowment insurance for urban and rural residents,low education level,small family size.Based on the above conclusions,this article proposes the following four policy recommendations:(1)Promote typical examples around farmers to increase their anticipation and confidence;(2)appropriately increase insurance benefits according to actual development trends;(3)promote insurance system collaboration,making social insurance and commercial insurance complement each other(4)attach importance to building a grassroots platform to facilitate farmers’ participation in insurance.