Page 119 - IJPS-11-5

International Journal of
Population Studies Endowment insurance and family consumption in China

A B C

Figure 1. Proportion of the population receiving pensions by age. (A) Linear fitting; (B) Quadratic fitting; (C) Cubic fitting.

A B C

Figure 2. Household consumption (log) of the population by age. (A) Linear fitting; (B) Quadratic fitting; (C) Cubic fitting.

Table 10. Regression results of endowment insurance type on control variables, thereby affirming a causal link between
household consumption pension receipt and household consumption.
Independent variable Dependent 4. Discussion
variable: Household
consumption The findings of this study provide significant insights into
Pension received from the institution where 0.017 (0.677) the intricate relationship between pension insurance and
he or she used to work after retirement household consumption, underscoring the pivotal role
Basic endowment insurance 0.111*** (7.340) that endowment insurance plays in shaping household
Supplementary enterprise endowment 0.067** (2.022) economic behavior. Specifically, the substantial increase
insurance in household consumption associated with pension
Commercial endowment insurance −0.013 (−0.369) participation illustrates the asset substitution effect, which
Old rural endowment insurance 0.141*** (5.946) suggests that the availability of a stable and predictable
New rural social pension insurance 0.106*** (9.576) income stream from pensions alleviates the need for
Urban and rural residents' endowment 0.088*** (3.638) precautionary savings. This shift enables households
insurance to reallocate more of their current income toward
Pension (log) 0.004** (2.043) consumption, thereby stimulating economic activity
Constant 9.852*** (240.242) (Feldstein, 1974; Hubbard et al., 1995).
Control variables Join The asset substitution effect is instrumental in
Household fixed effects Yes explaining why households exhibit a greater propensity
Year fixed effects Yes to increase consumption when they receive guaranteed
pension income. With the security of stable pensions,
Fixed effects F test 2.79 (p=0.0000) households feel less compelled to save for an uncertain
Model significance test 111.68 (p=0.0000) future, allowing them to direct more resources toward
Within R² 0.1129 immediate consumption. This behavioral pattern aligns
Sample size 35872 with the Permanent Income Hypothesis (Friedman, 1957),
Notes: *p<0.1; **p<0.05; ***p<0.01. which posits that individuals base their consumption

Volume 11 Issue 5 (2025) 113 https://doi.org/10.36922/ijps.4857