The Effect of Population Aging on Pension Enforcement: Do Firms Bear the Burden?
Economic Inquiry, Forthcoming
45 Pages Posted: 19 Oct 2021 Last revised: 21 Jun 2022
Date Written: June 14, 2021
Abstract
This paper starts from the observations that the pension contribution evasion of firms was prevalent in China due to lower pension enforcement. We examine how the local governments respond to the population aging and the impact of the aging on firm pension burden using administrative data over the period 2008-2015. We present three findings: First, population aging increases the pension burden of firms by enhancing pension enforcement. Second, fiscal pressure is the channel through which aging affects the pension enforcement of firms. Lastly, the pension administration system in China significantly affects the net impact of aging on the pension burden.
Keywords: Population aging, Pension burden, Pension enforcement
JEL Classification: H32, H51, H55, P35
Suggested Citation: Suggested Citation