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Pension fairness in China

Author

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  • Wang, Lijian
  • Béland, Daniel
  • Zhang, Sifeng

Abstract

The most populous country in the world, China faces immense socio-economic challenges providing adequate pensions to its growing elderly population. In that country, pensions available to older people vary considerably across the country's various pension schemes. This paper calculates the fairness coefficients of these pensions based on pension income, contributions, demand, and generational gap. The analysis shows that the pension fairness coefficients are 0.53, 0.38, 0.95, and 0.82, respectively. Synthesizing pension income, contributions, demand, and generational gap, the paper suggests that, in China, old-age pensions across different schemes are absolutely unfair. Finally, it analyzes the superficial and deeper factors behind pension unfairness in China before providing policy recommendations for improving the fairness of the country's pension system.

Suggested Citation

  • Wang, Lijian & Béland, Daniel & Zhang, Sifeng, 2014. "Pension fairness in China," China Economic Review, Elsevier, vol. 28(C), pages 25-36.
  • Handle: RePEc:eee:chieco:v:28:y:2014:i:c:p:25-36
    DOI: 10.1016/j.chieco.2013.11.003
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    References listed on IDEAS

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    Cited by:

    1. Anping Chen & Nicolaas Groenewold, 2017. "An increase in the retirement age in China: the regional economic effects," Applied Economics, Taylor & Francis Journals, vol. 49(7), pages 702-721, February.
    2. repec:eee:chieco:v:48:y:2018:i:c:p:1-13 is not listed on IDEAS
    3. Wang, Lijian & Béland, Daniel & Zhang, Sifeng, 2014. "Pension financing in China: Is there a looming crisis?," China Economic Review, Elsevier, vol. 30(C), pages 143-154.
    4. repec:eee:chieco:v:44:y:2017:i:c:p:16-29 is not listed on IDEAS

    More about this item

    Keywords

    China; Aging; Old-age pensions; Fairness; Social policy;

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