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Few and Unfair: Measurement and Decomposition of Regional Disparities in Pension Benefits among Urban and Rural Residents in China

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  • Songbiao Zhang
  • Xining Wang
  • Huilin Wang

Abstract

China’s aging population poses a significant challenge, drawing attention to regional disparities in pension benefits for urban and rural residents. Using diverse methods such as range, Gini coefficient, Theil index, regression-based inequality decomposition, and Oaxaca-Blinder decomposition, this study examines pension disparities from 2010 to 2022. The findings reveal that pension benefits for both urban and rural residents are not only insufficient but also exhibit significant regional disparities. The Theil index decomposition reveals 60% of the disparity within regions and 40% between regions. Uneven economic development emerges as the key contributor to widening regional gaps, emphasized by the regression-based analysis. Oaxaca-Blinder decomposition identifies an unjustifiable 41.99% contributing to the pension gap. These findings emphasize the necessity for China to take relevant measures in narrowing the regional disparities in pension benefits to promote social equity.

Suggested Citation

  • Songbiao Zhang & Xining Wang & Huilin Wang, 2025. "Few and Unfair: Measurement and Decomposition of Regional Disparities in Pension Benefits among Urban and Rural Residents in China," SAGE Open, , vol. 15(3), pages 21582440251, August.
    • Handle: RePEc:sae:sagope:v:15:y:2025:i:3:p:21582440251365456
    DOI: 10.1177/21582440251365456
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