Impact of Economic Factors on the Intention of Aging People to Live in Institutional Endowments - Thesis Example

The Chinese economy has entered the aging stage and this has created problems for the working section of the population. The ‘4-2-1’ family structure has made it difficult for employed couples to look after their parents and children who are entirely dependent on them. Consequently, institutions have emerged that provide endowment funds to the aged section of the Chinese population in order to support them.

The researcher determined that personal, individual, and household economic factors influence the intention of aged Chinese people to live under institutional endowments. The literature survey determined that the mentioned economic factors affect the intention of aged Chinese people. Nonetheless, the regression and correlation analysis reveals that ethnicity, living standard, and self-evaluation of health conditions have no significant effect on intention. Among individual economic factors, social relief, monthly income, bank deposits, and social and medical pensions have no significant influence on the decision to choose institutional endowments.

The income of the previous year as a household economic factor does not influence the decision of Chinese people. From the analysis, it is evident that there are other factors, which affect the decision to select institutional endowment. The Chinese Government has to increase its investment in the endowment industry since the demand for it has increased recently. China has entered the aging stage where the age of its residents has exceeded 60 years. Since the working members of the households are moving into new houses and adopting nuclear families, the old-aged members are facing issues (Hatton, 2015). Consequently, Gill (2006) stated that there has been an increase in demand for the endowment industry, which has the ability to support these sections of the population with pension funds and accommodation services. China is witnessing severe problems because of the ‘Silver Revolution’ that emerge from the ‘4-2-1’ Family (Zhang, 2013). This kind of structure is commonly found in China where there are only two family members working and supporting four of their grandparents and one child.