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The Power of Social Pensions


  • Huang, Wei

    () (National University of Singapore)

  • Zhang, Chuanchuan

    () (Central University of Finance and Economics)


This paper examines the impacts of social pension provision among people of different ages. Utilizing the county-by-county rollout of the New Rural Pension Scheme in rural China, we find that, among the age-eligible people, the scheme provision leads to higher household income (18 percent) and food expenditure (10 percent), lower labor supply (6 percent), and better health (11-14 percent). In addition, among the age-ineligible adults, the pension scheme shifts them from farming to non-farming work, lowers insurance participation rate, but does not change income, expenditure or health significantly. Finally, among the children aged below 15, the pension scheme leads to more pocket money received, more caring from grandparents, improved health, and higher schooling rate.

Suggested Citation

  • Huang, Wei & Zhang, Chuanchuan, 2016. "The Power of Social Pensions," IZA Discussion Papers 10425, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp10425

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    References listed on IDEAS

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    More about this item


    pension; health; elderly;

    JEL classification:

    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • O22 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Project Analysis

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