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Demographic Change, Intergenerational Transfers, and the Challenges for Social Protection Systems in the People’s Republic of China

Author

Listed:
  • Qiulin Chen

    (Stanford University)

  • Karen Eggleston

    (Stanford University)

  • Ling Li

    (Peking University)

Abstract

The transition in the People’s Republic of China from a centrally planned economy to a market-based economy is widely acclaimed for leading to unprecedented economic growth, but there is a growing awareness of the social strains accompanying that growth such as the lagging development of the social protection system as the population ages. Using estimates from the National Transfer Accounts database, we describe changes in life cycle public transfers; interhousehold transfers; and intrahousehold transfers for education, health care, and other support; and discuss the main challenges that demographic change poses for the pension and health care systems. Demographic change and its interaction with family behavior and social policies will strongly shape both future economic growth—through savings and investment decisions, labor supply and productivity—and the sustainability of social support systems.

Suggested Citation

  • Qiulin Chen & Karen Eggleston & Ling Li, 2011. "Demographic Change, Intergenerational Transfers, and the Challenges for Social Protection Systems in the People’s Republic of China," ADB Economics Working Paper Series 291, Asian Development Bank.
    • Handle: RePEc:ris:adbewp:0291
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    Cited by:

    1. Cai, Yong & Wang, Feng & Li, Ding & Wu, Xiwei & Shen, Ke, 2014. "China’s age of abundance: When might it run out?," The Journal of the Economics of Ageing, Elsevier, vol. 4(C), pages 90-97.
    2. Jin Feng & Pingyi Lou & Yangyang Yu, 2015. "Health Care Expenditure over Life Cycle in the People's Republic of China," Asian Development Review, MIT Press, vol. 32(1), pages 167-195, March.

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    Keywords

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    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts

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