Children, support in old age and social insurance in rural China
Most people in rural China have no plans for retirement other than the ingrained Chinese tradition that children care for old parents. Actually there are also no sources of social support such as social old-age insurance to rely on in rural people’ old age for a long time in China. In 1992, a social old-age insurance program, rural pension program, was initiated by the Chinese government to firstly establish a social security system in China’s rural area. The rural pension program experienced rapid development in the beginning years but grounded to halt after 1998. Since either children or pension program provides support for elderly, we expected that these two can be viewed as substitutes to some extent. Using data from China’s 2005 mini-census, we find that rural people who have at least one son are less likely to participate in pension program and each additional son and daughter both decreases their participation rate. Moreover, the effect of an additional son is much larger than that of an additional daughter. In addition, both evidence from mini-census and China Health and Retirement Longitudinal Study show that peasants accessing to pension are less likely to rely on their children for support in old age. These findings suggest that demand for children, especially for sons are partly driven by concerns relating to care in old age; children and formal social old-age insurance are substitutes for support in old age. We then expect that implementation of social old-age insurance may mitigate rural people’ demand for children, especially sons and thus correct China’s severe sex ratio bias to some extent. We test this hypothesis using the difference-in-differences strategy, and find that increase of sex ratio at the region level slowed down after the implementation of the rural pension program. Overall, our empirical analysis in this paper implies that sex ratio bias is partly due to demanding for sons for support in old age and carrying out social old-age insurance in rural China are helpful in mitigating demand for children and correcting sex ratio bias.
|Date of creation:||2011|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Esther Duflo, 2000.
"Schooling and Labor Market Consequences of School Construction in Indonesia: Evidence from an Unusual Policy Experiment,"
NBER Working Papers
7860, National Bureau of Economic Research, Inc.
- Esther Duflo, 2001. "Schooling and Labor Market Consequences of School Construction in Indonesia: Evidence from an Unusual Policy Experiment," American Economic Review, American Economic Association, vol. 91(4), pages 795-813, September.
- Avraham Ebenstein & Steven Leung, 2010. "Son Preference and Access to Social Insurance: Evidence from China's Rural Pension Program," Population and Development Review, The Population Council, Inc., vol. 36(1), pages 47-70.
- Das Gupta, Monica & Jiang Zhenghua & Li Bohua & Xie Zhenming & Woojin Chung & Bae Hwa-Ok, 2002.
"Why is son preference so persistent in East and South Asia? a cross-country study of China, India, and the Republic of Korea,"
Policy Research Working Paper Series
2942, The World Bank.
- Monica Das Gupta & Jiang Zhenghua & Li Bohua & Xie Zhenming & Woojin Chung & Bae Hwa-Ok, 2003. "Why is Son preference so persistent in East and South Asia? a cross-country study of China, India and the Republic of Korea," Journal of Development Studies, Taylor & Francis Journals, vol. 40(2), pages 153-187.
- Avraham Ebenstein, 2010. "The "Missing Girls" of China and the Unintended Consequences of the One Child Policy," Journal of Human Resources, University of Wisconsin Press, vol. 45(1).
- Nancy Qian, 2008.
"Missing Women and the Price of Tea in China: The Effect of Sex-Specific Earnings on Sex Imbalance,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 123(3), pages 1251-1285.
- Qian, Nancy, 2006. "Missing Women and the Price of Tea in China: The Effect of Sex-Specific Earnings on Sex Imbalance," CEPR Discussion Papers 5986, C.E.P.R. Discussion Papers.
- Li, Hongbin & Yi, Junjian & Zhang, Junsen, 2010. "Estimating the Effect of the One-Child Policy on Sex Ratio Imbalance in China: Identification Based on the Difference-in-Differences," IZA Discussion Papers 5149, Institute for the Study of Labor (IZA).
- Woojin Chung & Monica Das Gupta, 2007. "The Decline of Son Preference in South Korea: The Roles of Development and Public Policy," Population and Development Review, The Population Council, Inc., vol. 33(4), pages 757-783.
- Edlund, Lena & Li, Hongbin & Yi, Junjian & Zhang, Junsen, 2007. "Sex Ratios and Crime: Evidence from China’s One-Child Policy," IZA Discussion Papers 3214, Institute for the Study of Labor (IZA).
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:37798. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter)
If references are entirely missing, you can add them using this form.