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Labor Market Conditions and Social Insurance in China

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Abstract

Fifteen years after the introduction of highly ambitious social insurance programs for urban Chinese workers, a large number of them remain un-insured. This paper examines the relationship between labor market conditions and social insurance participation among industrial firms in the pre-crisis years of 2000–2007. I find that increased labor tightness over this period was a quantitatively important driver of participation. Comparing different segments of the labor market, stronger response to tightness is found in sectors with the largest shares of un-insured: private firms, those with a larger share of low-educated workers, and those without labor unions. Increased tightness in the years ahead can therefore be expected to aid policy makers in social insurance implementation and in combating insurance inequality.

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  • Rickne, Johanna, 2012. "Labor Market Conditions and Social Insurance in China," Working Paper Series 924, Research Institute of Industrial Economics.
  • Handle: RePEc:hhs:iuiwop:0924
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    Cited by:

    1. Wang, Lijian & Béland, Daniel & Zhang, Sifeng, 2014. "Pension fairness in China," China Economic Review, Elsevier, vol. 28(C), pages 25-36.
    2. repec:spr:soinre:v:132:y:2017:i:1:d:10.1007_s11205-016-1329-y is not listed on IDEAS

    More about this item

    Keywords

    Social insurance; Employer participation; Labor market tightness; People’s Republic of China;

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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