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Do Kinship Networks Crowd Out The New Rural Pension Plan In China? Policy Implications For An Aging China

Author

Listed:
  • DONGJIE TAO

    (School of Finance and Public Administration, Hubei University of Economics, Wuhan, P. R. China)

  • JUNPENG WANG

    (��School of Public Administration, Zhongnan University of Economics and Law, Wuhan, P. R. China)

  • HONGYING CAI

    (School of Finance and Public Administration, Hubei University of Economics, Wuhan, P. R. China)

  • KUI ZHAO

    (��School of Management, Huazhong University of Science and Technology Wuhan, P. R. China)

Abstract

Using data from China Family Panel Studies in 2012, this paper investigates the impact of kinship networks on participation in the New Rural Pension Plan (NRPP) in China. The theoretical model and empirical results indicate that kinship networks can provide informal social security, such as psychological security and financial transfers from relatives. Thus, people who are part of stronger kinship networks are less likely to participate in the NRPP than their counterparts. Our research facilitates an understanding of the interaction between social networks and formal institutions and provides policy implications for an aging China.

Suggested Citation

  • Dongjie Tao & Junpeng Wang & Hongying Cai & Kui Zhao, 2021. "Do Kinship Networks Crowd Out The New Rural Pension Plan In China? Policy Implications For An Aging China," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 66(06), pages 1647-1663, December.
    • Handle: RePEc:wsi:serxxx:v:66:y:2021:i:06:n:s021759081842002x
    DOI: 10.1142/S021759081842002X
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