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

See all articles by Jiakai Zhang

Jiakai Zhang

New Mexico Institute of Mining and Technology

Renjie Zhao

Northwest University

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

Zhang, Jiakai and Zhao, Renjie, The Effect of Population Aging on Pension Enforcement: Do Firms Bear the Burden? (June 14, 2021). Economic Inquiry, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3945714

Jiakai Zhang (Contact Author)

New Mexico Institute of Mining and Technology ( email )

801 Leroy Place
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6077680809 (Phone)

Renjie Zhao

Northwest University

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