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Meeting the Migrant Pension Challenge in China

Author

Listed:
  • Bei Lu
  • John Piggott

Abstract

This article proposes a notional defined contribution (NDC) mechanism to ensure pension mobility for the 150 million migrating workers in China during both the accumulation and drawdown phases. Planned governance would ensure independence from the three existing pension systems. An appropriately structured NDC plan of this type is shown to be viable by reference to a previously developed model of Zhejiang Province’s social security systems. Such a plan would remove mobility barriers for migrating workers, increase the retirement benefit for mobile workers, and reduce the future government liability for payouts in other pension systems in which migrants currently hold membership. (JEL codes: H55, J11, J18, R23)

Suggested Citation

  • Bei Lu & John Piggott, 2015. "Meeting the Migrant Pension Challenge in China," CESifo Economic Studies, CESifo, vol. 61(2), pages 438-464.
    • Handle: RePEc:oup:cesifo:v:61:y:2015:i:2:p:438-464.
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    File URL: http://hdl.handle.net/10.1093/cesifo/ifu017
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    Cited by:

    1. Bairoliya, Neha & Miller, Ray, 2021. "Social insurance, demographics, and rural-urban migration in China," Regional Science and Urban Economics, Elsevier, vol. 91(C).

    More about this item

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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