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One country, two systems: evidence on retirement patterns in China

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  • Giles, John
  • Lei, Xiaoyan
  • Wang, Gewei
  • Wang, Yafeng
  • Zhao, Yaohui

Abstract

This paper documents the patterns and correlates of retirement in China using a nationally representative survey, the China Health and Retirement Longitudinal Study. After documenting stark differences in retirement ages between urban and rural residents, the paper shows that China's urban residents retire earlier than workers in many Organization for Economic Co-operation and Development countries and that rural residents continue to work until advanced ages. Differences in access to generous pensions and economic resources explain much of the urban–rural difference in retirement rates. The paper suggests that reducing disincentives created by China's Urban Employee Pension system, improving health status, providing childcare and elder care support may all facilitate longer working lives. Given spouse preferences for joint retirement, creating incentives for women to retire later may facilitate longer working lives for both men and women.

Suggested Citation

  • Giles, John & Lei, Xiaoyan & Wang, Gewei & Wang, Yafeng & Zhao, Yaohui, 2023. "One country, two systems: evidence on retirement patterns in China," Journal of Pension Economics and Finance, Cambridge University Press, vol. 22(2), pages 188-210, April.
    • Handle: RePEc:cup:jpenef:v:22:y:2023:i:2:p:188-210_3
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    Cited by:

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    2. Daniel W. L. Lai & Yong-Xin Ruan & Julia Juan Wang & Emma H. S. Liu & Jia-Jia Zhou, 2023. "Experience of Chinese Recent Retirees on the Effects of Retirement on Healthy Ageing in Shenzhen and Hong Kong," IJERPH, MDPI, vol. 20(4), pages 1-13, February.
    3. Gong, Jinquan & Wang, Gewei & Wang, Yafeng & Zhao, Yaohui, 2022. "Consumption and poverty of older Chinese: 2011–2020," The Journal of the Economics of Ageing, Elsevier, vol. 23(C).
    4. Yao, Yuxin & Zhang, Yi, 2023. "The long-term and intergenerational effects of early-life hunger experience on human capital and labor market outcomes," China Economic Review, Elsevier, vol. 77(C).
    5. Feng, Lyubing & He, Yuxi & Zhan, Peng, 2023. "Economic independence and living arrangements of older women with agricultural Hukou in China," China Economic Review, Elsevier, vol. 81(C).

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    More about this item

    JEL classification:

    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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