IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v66y2024ics1544612324006925.html

The effect of public pension insurance integration on income disparities between urban-rural households: Evidence from a quasi-experiment in China

Author

Listed:
  • Li, Qianqian
  • Zhao, Zhengtang
  • Chen, Tingting

Abstract

We examine the impact of the enforcement of Urban and Rural Resident Pension Insurance (URRPI) on urban-rural income disparities with a staggered DID model based on the data from (Harmonized) CHARLS for 2011–2018 in China. We find that the URRPI integration materially narrowed income disparities between urban and rural households participating in different pension insurances. We also find heterogeneity in the reduction of income disparities on hukou, age, and health level. Possible mechanism include household incomes, working hours, non-agriculture employment and household intergenerational transfers. Our findings are of great significance for the improvement of the public pension insurance system.

Suggested Citation

  • Li, Qianqian & Zhao, Zhengtang & Chen, Tingting, 2024. "The effect of public pension insurance integration on income disparities between urban-rural households: Evidence from a quasi-experiment in China," Finance Research Letters, Elsevier, vol. 66(C).
    • Handle: RePEc:eee:finlet:v:66:y:2024:i:c:s1544612324006925
    DOI: 10.1016/j.frl.2024.105662
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612324006925
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2024.105662?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Nora Lustig, 2016. "Fiscal Policy, Inequality and the Poor in the Developing World - Working Paper 441," Working Papers 441, Center for Global Development.
    2. Barro, Robert J, 1974. "Are Government Bonds Net Wealth?," Journal of Political Economy, University of Chicago Press, vol. 82(6), pages 1095-1117, Nov.-Dec..
    3. Gustman, Alan L. & Steinmeier, Thomas L., 2001. "How effective is redistribution under the social security benefit formula?," Journal of Public Economics, Elsevier, vol. 82(1), pages 1-28, October.
    4. Nora Lustig, 2016. "Fiscal Policy, Inequality and the Poor in the Developing World," Working Papers 1612, Tulane University, Department of Economics, revised Aug 2017.
    5. Pengpeng Yue & Aslihan Gizem Korkmaz & Haigang Zhou, 2020. "Household Financial Decision Making Amidst the COVID-19 Pandemic," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 56(10), pages 2363-2377, August.
    6. Nora Lustig, 2016. "Fiscal Policy, Inequality and the Poor in the Developing World," Commitment to Equity (CEQ) Working Paper Series 1323, Tulane University, Department of Economics.
    7. Ye, Xiang & Yue, Pengpeng, 2023. "Financial literacy and household energy efficiency: An analysis of credit market and supply chain," Finance Research Letters, Elsevier, vol. 52(C).
    8. Goodman-Bacon, Andrew, 2021. "Difference-in-differences with variation in treatment timing," Journal of Econometrics, Elsevier, vol. 225(2), pages 254-277.
    9. Pengpeng Yue & Aslihan Gizem Korkmaz & Haigang Zhou, 2020. "Household Financial Decision Making Amidst the COVID-19 Pandemic," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 56(10), pages 2363-2377, August.
    10. Nora Lustig, 2016. "Fiscal policy, inequality, and the poor in the developing world," WIDER Working Paper Series 164b (Revised version May, World Institute for Development Economic Research (UNU-WIDER).
    11. Gianluca Grimalda & Alain Trannoy & Fernando Filgueira & Karl Ove Moene, 2020. "Egalitarian redistribution in the era of hyper-globalization," Review of Social Economy, Taylor & Francis Journals, vol. 78(2), pages 151-184, April.
    12. Nora Lustig, 2016. "Fiscal policy, inequality and the poor in the developing world," Working Papers 418, ECINEQ, Society for the Study of Economic Inequality.
    13. J. Ignacio Conde-Ruiz & Paola Profeta, 2007. "The Redistributive Design of Social Security Systems," Economic Journal, Royal Economic Society, vol. 117(520), pages 686-712, April.
    14. David Jesuit & Vincent Mahler, 2017. "Fiscal Redistribution in Comparative Perspective: Recent Evidence from the Luxembourg Income Study (LIS) Datacenter," LIS Working papers 717, LIS Cross-National Data Center in Luxembourg.
    15. Thorsten Beck & Ross Levine & Alexey Levkov, 2010. "Big Bad Banks? The Winners and Losers from Bank Deregulation in the United States," Journal of Finance, American Finance Association, vol. 65(5), pages 1637-1667, October.
    16. Xu, Dandan & Guo, Dongli & Yue, Pengpeng & Li, Mengshi, 2024. "Household green consumption: Does digital inclusion matter?," International Review of Financial Analysis, Elsevier, vol. 91(C).
    17. Pengpeng Yue & Aslihan Gizem Korkmaz & Zhichao Yin & Haigang Zhou, 2021. "Household-owned Businesses’ Vulnerability to the COVID-19 Pandemic," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 57(6), pages 1662-1674, May.
    18. Nora Lustig, 2016. "Fiscal policy, inequality, and the poor in the developing world," WIDER Working Paper Series 164a, World Institute for Development Economic Research (UNU-WIDER).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhijie Song & Shaopeng Zhang, 2025. "Regional Cooperation and the Urban–Rural Income Inequality: Evidence from China’s East–West Cooperation Program," Sustainability, MDPI, vol. 17(20), pages 1-25, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hyojung Kang & Jorge Martinez‐Vazquez, 2022. "When does foreign direct investment lead to inclusive growth?," The World Economy, Wiley Blackwell, vol. 45(8), pages 2394-2427, August.
    2. Haydeeliz Carrasco & Hamidou Jawara & Moritz Meyer, 2022. "The Effects Of Fiscal Policy On Inequality And Poverty In The Gambia," Commitment to Equity (CEQ) Working Paper Series 117, Tulane University, Department of Economics.
    3. Markina Oksana, 2022. "Taxation, Inequality, and Poverty: Evidence from Ukraine," Central European Economic Journal, Sciendo, vol. 9(56), pages 1-18, January.
    4. Georgeta Vidican Auktor & Markus Loewe, 2022. "Subsidy Reform and the Transformation of Social Contracts: The Cases of Egypt, Iran and Morocco," Social Sciences, MDPI, vol. 11(2), pages 1-22, February.
    5. Haydeeliz Carrasco Nunez & Hamidou Jawara & Moritz Meyer, 2022. "The Effects of Fiscal Policy on Inequality and Poverty in The Gambia," World Bank Publications - Reports 37187, The World Bank Group.
    6. Jon Jellema & Matthew Wai-Poi & Rythia Afkar, 2017. "The Distributional Impact of Fiscal Policy in Indonesia," Commitment to Equity (CEQ) Working Paper Series 40, Tulane University, Department of Economics.
    7. Pozo,Wilson Jimenez & Ibarra,Silvia Granados & Ran Li & Gustavo Javier Canavire Bacarreza & Gómez Aliaga,Guillermo & Britton,Chevanne & Rios-Avila,Fernando, 2024. "Fiscal Incidence on the Island: Grenada’s Fiscal System and Its Incidence," Policy Research Working Paper Series 10678, The World Bank.
    8. Gautam Negi, 2021. "Fiscal Impulse And Sectoral Output €“ Evidence From Indian States," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 28, pages 151-167, December.
    9. Meng Cai & Jing Xu, 2022. "Evaluating the Redistributive Effect of Social Security Programs in China over the Past 30 Years," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 30(1), pages 58-81, January.
    10. Wang, Pengcheng & Yang, Xuelin, 2024. "Social trust and household financial decision-making: An empirical study based on the usage of household financial technology," Finance Research Letters, Elsevier, vol. 70(C).
    11. Bargain, Olivier B. & Jara Tamayo, Holguer Xavier & Magejo, Prudence & Benhura, Miracle, 2018. "Learning from the," IZA Discussion Papers 12017, IZA Network @ LISER.
    12. Ni, Junwei & Gao, Yidan, 2025. "Opportunities for higher education for children, financial literacy and household capital," Finance Research Letters, Elsevier, vol. 78(C).
    13. He, Wei & Ling, Wenhao & Chen, Ziyi, 2025. "Financial literacy, old-age dependency ratio and household fraud risk," Finance Research Letters, Elsevier, vol. 75(C).
    14. Cai, Yuting & Liu, Yiping, 2025. "The impact of internet utilization on household entrepreneurship in China," Finance Research Letters, Elsevier, vol. 80(C).
    15. Liu, Tifeng & Shi, Guoqing & Gu, Fei & Xu, Junzhuo, 2025. "Empirical research on the acceptance of digital finance and consumption patterns among middle-aged and elderly people in rural areas: The impact mechanism of life satisfaction and income level," Finance Research Letters, Elsevier, vol. 79(C).
    16. Xie, Da & Zhang, Min & Bing, Pijing, 2025. "Manual task intensity and male-female wage gap: Evidence from China," Finance Research Letters, Elsevier, vol. 76(C).
    17. Li, Mulin & Wan, Bonan, 2025. "Consumer credit, family education level, and human capital investment," Finance Research Letters, Elsevier, vol. 80(C).
    18. Wang, Chao & Geng, Wei, 2025. "Local government debt and household human capital investment," Finance Research Letters, Elsevier, vol. 79(C).
    19. Qu, Bowen, 2025. "Pension levels, social activities, and household consumption," Finance Research Letters, Elsevier, vol. 75(C).
    20. Zhao, Dongfang & Gao, Genghe & Liu, Tao & Zhao, Zhenkun, 2024. "Population aging, digital divide, and household financial asset choices—An empirical study based on prefecture-level population census data," Finance Research Letters, Elsevier, vol. 66(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:66:y:2024:i:c:s1544612324006925. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.