The Impact of Subsistence Insurance on Employment

Shanghai Experimental Foreign Language School, Puxi Campus, Shanghai, China

Abstract

This study investigates the impact of subsistence insurance on employment within China’s urban social security and welfare network (SSWN), focusing on long-term dependency patterns and their underlying causes. Subsistence insurance is an essential constituent of the SSWN, however; its effect on employment remains underexplored. Prior research has primarily examined employment willingness, leaving gaps in understanding the role of “receipt duration” in fostering dependency. This study uses event history analysis to assess the relationship between subsistence insurance and employment outcomes, offering insights into welfare dependency in a rapidly transitioning economy. The study leverages data from the Urban Household Survey (2010-2020), analyzing employment status, demographic factors, and regional economic indicators. Regression and fixed-effects models reveal that while subsistence insurance provides crucial financial support, prolonged reliance may negatively impact labor market engagement. Regional disparities are also examined, with stronger negative employment effects in more developed areas. The findings have significant policy implications, suggesting that reforming welfare policies to promote long-term employability and reduce dependency is essential. This study contributes to the broader understanding of welfare mechanisms in transitional economies and informs policymakers on enhancing social support systems.