Impact of Registered Household Domicile on Chinese Residents' Choice of Financial Sources for Their Elderly Life——Based on Mixed-Logit Models

Abstract

Abstract:

This paper evaluates the impact of registered household domicile (mainly from the perspective of urban versus rural domicile) on Chinese residents' choice of financial sources for their elderly life. Generally, financial sources available for the elderly worldwide include children's support, social pension, commercial pension insurance and private savings. This paper draws upon the CHARLS (Chinese Health and Retirement Longitudinal Study) 2011data. By comparing the model goodness-of-fits and other tests among Multinomial Logit models, Multinomial Probit models and Mixed-Logit models, we finally choose Mixed-Logit models as our main models and estimate the marginal effects. The results show that the difference in registered household domicile is responsible for Chinese residents' choice of financial sources for their elderly life, both statistically and economically. To be specific, rural-registered residents seem to rely heavily on the children's support while urban-registered residents are more inclined to choose pension. Neither rural-registered residents nor urban-registered residents have a clear preference in choosing private savings and commercial pension insurance as the main financial source of elderly life.

Key words: household registration system, financial sources for elderly life, mixed-Logit models, micro-econometrics

Wang Jiyuan, Wang Shouyang, Hu Yi. Impact of Registered Household Domicile on Chinese Residents' Choice of Financial Sources for Their Elderly Life——Based on Mixed-Logit Models[J]. , 2019, 31(1): 3-14.

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