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Expanding social insurance coverage in urban China

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  • Giles, John
  • Wang, Dewen
  • Park, Albert

Abstract

This paper first reviews the history of social insurance policy and coverage in urban China, documenting the evolution in the coverage of pensions and medical and unemployment insurance for both local residents and migrants, and highlighting obstacles to expanding coverage. The paper then uses two waves of the China Urban Labor Survey, conducted in 2005 and 2010, to examine the correlates of social insurance participation before and after implementation of the 2008 Labor Contract Law. A higher labor tax wedge is associated with a lower probability that local employed residents participate in social insurance programs, but is not associated with participation of wage-earning migrants, who are more likely to be dissuaded by fragmentation of the social insurance system. The existing gender gap in social insurance coverage is explained by differences in coverage across industrial sectors and firm ownership classes in which men and women work.

Suggested Citation

  • Giles, John & Wang, Dewen & Park, Albert, 2013. "Expanding social insurance coverage in urban China," Policy Research Working Paper Series 6497, The World Bank.
    • Handle: RePEc:wbk:wbrwps:6497
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    Cited by:

    1. Yinjun Zhao & Bowei Kang & Yawen Liu & Yichong Li & Guoqing Shi & Tao Shen & Yong Jiang & Mei Zhang & Maigeng Zhou & Limin Wang, 2014. "Health Insurance Coverage and Its Impact on Medical Cost: Observations from the Floating Population in China," PLOS ONE, Public Library of Science, vol. 9(11), pages 1-9, November.
    2. Li, Lixing & Liu, Kevin Zhengcheng & Nie, Zhuo & Xi, Tianyang, 2021. "Evading by any means? VAT enforcement and payroll tax evasion in China," Journal of Economic Behavior & Organization, Elsevier, vol. 185(C), pages 770-784.
    3. Jiwei Qian & Zhuoyi Wen, 2021. "Extension of social insurance coverage to informal economy workers in China: An administrative and institutional perspective," International Social Security Review, John Wiley & Sons, vol. 74(1), pages 79-102, January.
    4. Yang, Chih-Hai, 2023. "Strengthening worker benefits or destroying jobs: Effect of the 2008 Labor Contract Law in China," International Review of Law and Economics, Elsevier, vol. 73(C).
    5. Gallagher, Mary & Giles, John & Park, Albert & Wang, Meiyan, 2013. "China's 2008 labor contract law : implementation and implications for China's workers," Policy Research Working Paper Series 6542, The World Bank.
    6. Xiahai Wei & Tony Fang & Yang Jiao & Jiahui Li, 2019. "Language Premium Myth or Fact: Evidence from Migrant Workers of Guangdong, China," Journal of Labor Research, Springer, vol. 40(3), pages 356-386, September.
    7. Qing Wang, 2017. "Health of the Elderly Migration Population in China: Benefit from Individual and Local Socioeconomic Status?," IJERPH, MDPI, vol. 14(4), pages 1-12, April.
    8. John Giles & Dewen Wang & Albert Park, 2013. "Expanding Social Insurance Coverage in Urban China," Research in Labor Economics, in: Labor Market Issues in China, pages 123-179, Emerald Group Publishing Limited.
    9. Chih-Hai Yang, 2023. "R&D responses to labor cost shock in China: does firm size matter?," Small Business Economics, Springer, vol. 61(4), pages 1773-1793, December.
    10. Giles, John & Meng, Xin & Xue, Sen & Zhao, Guochang, 2021. "Can information influence the social insurance participation decision of China's rural migrants?," Journal of Development Economics, Elsevier, vol. 150(C).
    11. Cousins, Mel, 2022. "Elective social insurance systems in developing East and South-East Asian countries," MPRA Paper 114078, University Library of Munich, Germany.
    12. Nong Zhu & Cécile Batisse, 2020. "La face cachée du « rêve chinois » : migrants et protection sociale," CIRANO Working Papers 2019s-38, CIRANO.
    13. Jiajing Li & Yanran Huang & Stephen Nicholas & Jian Wang, 2019. "China’s New Cooperative Medical Scheme’s Impact on the Medical Expenses of Elderly Rural Migrants," IJERPH, MDPI, vol. 16(24), pages 1-11, December.
    14. Francisco Perez-Arce & Maria Prados & Erik Meijer & Jinkook Lee, 2018. "Social Security Coverage around the World: The Case of China and Mexico," Working Papers wp395, University of Michigan, Michigan Retirement Research Center.
    15. Liu, Chen & Yang, Wei, 2023. "Does social insurance stimulate business creation? Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 79(C).
    16. Shi, Xuezhu, 2020. "Locked out? China’s health insurance scheme and internal migration," Labour Economics, Elsevier, vol. 67(C).
    17. Kieu‐Dung Nguyen & Duc‐Thanh Nguyen & Duy‐Dat Nguyen & Van‐Anh Thi Tran, 2021. "Labour law reform and labour market outcomes in Vietnam," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 8(2), pages 299-326, May.
    18. Huan Wang & Sarah‐Eve Dill & Huan Zhou & Yue Ma & Hao Xue & Sean Sylvia & Kumi Smith & Matthew Boswell & Alexis Medina & Prashant Loyalka & Cody Abby & Dimitris Friesen & Nathan Rose & Yian Guo & Scot, 2021. "Health, economic, and social implications of COVID‐19 for China's rural population," Agricultural Economics, International Association of Agricultural Economists, vol. 52(3), pages 495-504, May.

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    Keywords

    Health Economics&Finance; Insurance&Risk Mitigation; Social Protections&Assistance; Pensions&Retirement Systems; Wages; Compensation&Benefits;
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