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Relationships between migration and the fiscal sustainability of the pension system in China

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  • Haoyu Hu
  • Wei Wang
  • Dawei Feng
  • Hualei Yang

Abstract

There are a few existing studies on whether domestic migration improves China’s pension system’s fiscal sustainability in the context of rapid urbanization and industrialization. In this paper, we systematically investigate the impact of migration on the solvency of the worker’s old-age insurance for urban employees by constructing actuarial and econometric models. We use panel data from 2002 to 2018, collected from 31 provinces in China. The results show that the association between migration and the solvency of pensions is an inverted-U shape along the urbanization process. Further regional comparison showed that the above-stated inverted-U curve is more pronounced in the central and western regions. We also established that the number of participants and the contribution base are the main contributors to these results. Our conclusions are important for future population policies and public pension systems in China.

Suggested Citation

  • Haoyu Hu & Wei Wang & Dawei Feng & Hualei Yang, 2021. "Relationships between migration and the fiscal sustainability of the pension system in China," PLOS ONE, Public Library of Science, vol. 16(3), pages 1-16, March.
    • Handle: RePEc:plo:pone00:0248138
    DOI: 10.1371/journal.pone.0248138
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    References listed on IDEAS

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    1. Qing Zhao & Haijie Mi, 2019. "Evaluation on the Sustainability of Urban Public Pension System in China," Sustainability, MDPI, vol. 11(5), pages 1-20, March.
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