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Labor market conditions and social insurance in China

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  • Rickne, Johanna

Abstract

This paper provides micro-level evidence on the relationship between labor market conditions and social insurance participation among Chinese industrial firms. I find that the increased scarcity of labor over this period was a quantitatively important driver of participation. Moreover, a comparison of the responses in different segments of the labor market shows that the response was relatively stronger in sectors with larger shares of uninsured workers, namely in private firms, those with a larger share of low-educated workers, and those without labor unions. The results suggest that a tighter labor market in the years ahead can aid policy makers to implement social insurance programs and combat insurance inequality.

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  • Rickne, Johanna, 2013. "Labor market conditions and social insurance in China," China Economic Review, Elsevier, vol. 27(C), pages 52-68.
    • Handle: RePEc:eee:chieco:v:27:y:2013:i:c:p:52-68
    DOI: 10.1016/j.chieco.2013.07.003
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    3. Mel Cousins, 2021. "The sustainability of China’s Urban Employees’ Pension Programme: A case of getting old before getting rich?," International Social Security Review, John Wiley & Sons, vol. 74(1), pages 59-77, January.
    4. Ha, Le Thanh, 2022. "Effects of digitalization on financialization: Empirical evidence from European countries," Technology in Society, Elsevier, vol. 68(C).
    5. Deng, Lixing & Lai, Shaojie & Liu, Shiang & Pu, Xiaoling, 2022. "Social insurance premiums and corporate cash holdings: Evidence from social insurance law in China," Economic Modelling, Elsevier, vol. 114(C).
    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. Phuc Nguyen, Canh & Dinh Su, Thanh & Doytch, Nadia, 2020. "The drivers of financial development: Global evidence from internet and mobile usage," Information Economics and Policy, Elsevier, vol. 53(C).
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    9. Yang, Ziyan, 2020. "Contract design in China’s rural land rental market: Contractual flexibility and rental payments," Journal of Economic Behavior & Organization, Elsevier, vol. 178(C), pages 15-43.
    10. Yangyang Liang & Zhaoyang Long, 2023. "Collection Efficiency of Public Pension Funds: Based on Dynamic Panel Threshold Model," SAGE Open, , vol. 13(3), pages 21582440231, August.
    11. Bayari, Celal, 2018. "Economy and Market in China: The State, Wage Labour and the Construction of the ‘China Price’," MPRA Paper 100900, University Library of Munich, Germany, revised 04 Mar 2018.
    12. Wang, Lijian & Béland, Daniel & Zhang, Sifeng, 2014. "Pension fairness in China," China Economic Review, Elsevier, vol. 28(C), pages 25-36.
    13. Wei Cui & Jeffrey Hicks & Max Norton, 2022. "How well-targeted are payroll tax cuts as a response to COVID-19? evidence from China," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 29(5), pages 1321-1347, October.
    14. Yao, Wenyun & Lu, Feier & Wang, Yuting & Song, Zilong, 2023. "Social insurance contributions and firms' debt concentration choice: A quasi-natural experiment based on the implementation of China's social insurance law," Pacific-Basin Finance Journal, Elsevier, vol. 79(C).
    15. Yeqing Huang & Fei Guo, 2017. "Welfare Programme Participation and the Wellbeing of Non-local Rural Migrants in Metropolitan China: A Social Exclusion Perspective," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 132(1), pages 63-85, May.
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    17. Cousins, Mel, 2022. "Elective social insurance systems in developing East and South-East Asian countries," MPRA Paper 114078, University Library of Munich, Germany.

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    More about this item

    Keywords

    Social insurance; Employer participation; Labor market tightness; People's Republic of China;
    All these keywords.

    JEL classification:

    • 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
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory

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