The Power of Social Pensions

51 Pages Posted: 27 Dec 2016

See all articles by Wei Huang

Wei Huang

Harvard University - Department of Economics; NBER; IZA Institute of Labor Economics

Chuanchuan Zhang

Central University of Finance and Economics (CUFE) - School of Economics

Abstract

This paper examines the impacts of social pension provision among people of different ages. Utilizing the county-by-county rollout of the New Rural Pension Scheme in rural China, we find that, among the age-eligible people, the scheme provision leads to higher household income (18 percent) and food expenditure (10 percent), lower labor supply (6 percent), and better health (11-14 percent). In addition, among the age-ineligible adults, the pension scheme shifts them from farming to non-farming work, lowers insurance participation rate, but does not change income, expenditure or health significantly. Finally, among the children aged below 15, the pension scheme leads to more pocket money received, more caring from grandparents, improved health, and higher schooling rate.

Keywords: pension, health, elderly

JEL Classification: E21, H55, I38, O22

Suggested Citation

Huang, Wei and Zhang, Chuanchuan, The Power of Social Pensions. IZA Discussion Paper No. 10425. Available at SSRN: https://ssrn.com/abstract=2889671

Wei Huang (Contact Author)

Harvard University - Department of Economics ( email )

Littauer Center
Cambridge, MA 02138
United States

NBER ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Chuanchuan Zhang

Central University of Finance and Economics (CUFE) - School of Economics ( email )

Beijing, Beijing 100081
China

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