Labor Market Conditions and Social Insurance in China
AbstractFifteen years after the introduction of highly ambitious social insurance programs for urban Chinese workers, a large number of them remain un-insured. This paper examines the relationship between labor market conditions and social insurance participation among industrial firms in the pre-crisis years of 2000–2007. I find that increased labor tightness over this period was a quantitatively important driver of participation. Comparing different segments of the labor market, stronger response to tightness is found in sectors with the largest shares of un-insured: private firms, those with a larger share of low-educated workers, and those without labor unions. Increased tightness in the years ahead can therefore be expected to aid policy makers in social insurance implementation and in combating insurance inequality.
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Bibliographic InfoPaper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 924.
Length: 32 pages
Date of creation: 05 Sep 2012
Date of revision:
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More information through EDIRC
Social insurance; Employer participation; Labor market tightness; People’s Republic of China;
Find related papers by JEL classification:
- D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
- J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
- J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-09-22 (All new papers)
- NEP-IAS-2012-09-22 (Insurance Economics)
- NEP-LAB-2012-09-22 (Labour Economics)
- NEP-TRA-2012-09-22 (Transition Economics)
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