How Does Social Insurance Affect the Social Interactions of Rural Residents in China: Study on the Impact of Rural Formal Social Security System on Informal Social Security Mechanism

Abstract

With the increasing mobility of the rural population in China and the growing number of residents moving to the cities for work or study, rural society is forming a pluralistic, interest-centered, “open” social networks relations that follows the modern rule of law contract. Based on Chinese General Social Survey (CGSS) data, the results of the empirical study finds that social insurance can significantly enhance the social interactions of rural residents in China, that is, formal social security system in rural areas promotes informal social security mechanisms such as social interactions. The results of the grouping test show that rural residents in China’s different regions were affected by social insurance in different ways. Social insurance has a greater impact on the social interactions in the eastern region than in the middle and western regions. The propensity score matching method was used to reduce the sample selection bias, and the findings of the paper were found to be robust.

Cross-Cultural Evolution of China’s Rural Social Security System: A Global Comparison

“…This approach is somewhat unique on the global stage, where such a specific concentration isn't always prevalent. In stark contrast, developed nations, particularly in Europe and Canada, boast more holistic rural social security systems [6]. Their frameworks encompass a broader spectrum of protections, including not just basic health and old-age insurance but also unemployment and disability benefits, thereby creating a more varied and comprehensive social welfare landscape.…”

“…China can draw inspiration from these experiences to extend the functions of its social security system to education, vocational training, and social integration [9] . By providing more educational and training opportunities, China can help rural residents improve their skills and employment opportunities, thereby enhancing their quality of life [10].…”