Abstract: Social security is a dual attribute of economy and society, which helps to realize the unity of efficiency and equity, and maintain social equity and sustainable economic development. This paper analyzes the economic effects of social security expenditure from the perspectives of efficiency and equity, and uses inter-provincial panel data to find that social security expenditure is beneficial to economic growth, and there is regional heterogeneity in the effect of less developed areas than developed areas. From the perspective of efficiency, social security expenditure improves labor productivity by increasing the quantity of labor supply and optimizing the quality of labor supply (namely, human capital accumulation), which is conducive to economic growth. From the perspective of equity, social security expenditure creates a good economic and social environment through redistribution effect and has an incentive effect on economic growth. Therefore, the construction and steady development of the social security system, giving full play to its redistribution function and its incentive effect on the labor market, and promoting the efficiency and fair and coordinated development of the social security system are important ways to achieve Chinese economic growth.
