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An evaluation of pension differentials between Chinese private and public sectors from perspective of protection and incentives over the lifecycle

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  • Jia, Hongbo

Abstract

This article evaluates pension differentials between the private and public sectors over the lifecycle in urban areas in China. The aim of this study was to examine social equity in the face of increasing pressures to reform the current pension system. We developed a model to measure the protection and incentives offered by pensions in the private and public sectors. By incorporating educational cost, career length, retirement age, average years that a retiree receives the pension after retirement, growth rate of wages, interest rates and pension benefits into the model, we provided actuarial assessments. This study found that the current institutional arrangement of pensions in China results in negative incentives for workers in the public sector.

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  • Jia, Hongbo, 2017. "An evaluation of pension differentials between Chinese private and public sectors from perspective of protection and incentives over the lifecycle," China Economic Review, Elsevier, vol. 44(C), pages 16-29.
    • Handle: RePEc:eee:chieco:v:44:y:2017:i:c:p:16-29
    DOI: 10.1016/j.chieco.2017.03.002
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    Cited by:

    1. Wang, Wen & Shi, Hongyu & Li, Qiang, 2023. "Pension gap between the Chinese public and nonpublic sectors： evidence in the context of the integration of dual-track pension schemes," International Review of Economics & Finance, Elsevier, vol. 85(C), pages 664-688.
    2. Li, Zhigang & Wu, Mingqin, 2018. "Education and welfare program compliance: Firm-level evidence from a pension reform in China," China Economic Review, Elsevier, vol. 48(C), pages 1-13.
    3. Lei, Xiaoyan & Liu, Hong, 2018. "Gender difference in the impact of retirement on cognitive abilities: Evidence from urban China," Journal of Comparative Economics, Elsevier, vol. 46(4), pages 1425-1446.

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