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Pension reform in China: Preparing for the future

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  • Loraine West

Abstract

China is revamping its enterprise-based old-age security system and introducing a pension programme financed by the employer, employee, and the government through a combination of pooled funds and individual accounts. The new system is expanding coverage to the urban workforce outside the state sector and protecting benefits against inflation. The decentralised nature of the pension pools, however, limits increases in efficiency and portability of pension benefits. Sustainability of the revised system will require attention to fund management regulations and preparation for rapid population ageing by expanding coverage to rural wage earners and reducing benefits.

Suggested Citation

  • Loraine West, 1999. "Pension reform in China: Preparing for the future," Journal of Development Studies, Taylor & Francis Journals, vol. 35(3), pages 153-183.
    • Handle: RePEc:taf:jdevst:v:35:y:1999:i:3:p:153-183
    DOI: 10.1080/00220389908422577
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    Cited by:

    1. Iris Claus & Les Oxley & Yong Cai & Yuan Cheng, 2014. "Pension Reform In China: Challenges And Opportunities," Journal of Economic Surveys, Wiley Blackwell, vol. 28(4), pages 636-651, September.
    2. Wenchao (Michelle) Jin, 2016. "Explaining low employment rates among older women in urban China," IFS Working Papers W16/24, Institute for Fiscal Studies.
    3. Linda Yueh, 2010. "The Economy of China," Books, Edward Elgar Publishing, number 3705.
    4. Margaret Maurer-Fazio & James Hughes & Dandan Zhang, 2005. "Economic Reform and Changing Patterns of Labor Force Participation in Urban and Rural China," William Davidson Institute Working Papers Series wp787, William Davidson Institute at the University of Michigan.
    5. Pei-Ju Liao & Ping Wang & Yin-Chi Wang & Chong Kee Yip, 2020. "To Stay or to Migrate? When Becker Meets Harris-Todaro," NBER Working Papers 27767, National Bureau of Economic Research, Inc.

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