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Economic efficiency and social insurance reforms in China

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  • H. Li

Abstract

This study discusses efficiency issues related to social insurance provisions and their implications for the newly established three‐pillar pension system and three‐tier health insurance system in China. It shows that these new systems can be improved substantially through some restructuring to reduce efficiency losses. The discussion of efficiency consequences focuses on correction for market failure and alternative mechanisms for financing and providing social insurance benefits. Alternative methods for financing the transition are also discussed.

Suggested Citation

  • H. Li, 2000. "Economic efficiency and social insurance reforms in China," Contemporary Economic Policy, Western Economic Association International, vol. 18(2), pages 194-204, April.
    • Handle: RePEc:bla:coecpo:v:18:y:2000:i:2:p:194-204
    DOI: 10.1111/j.1465-7287.2000.tb00017.x
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    References listed on IDEAS

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    1. Hussain, Athar, 1994. "Social Security in Present-Day China and Its Reform," American Economic Review, American Economic Association, vol. 84(2), pages 276-280, May.
    2. Michael Rothschild & Joseph Stiglitz, 1976. "Equilibrium in Competitive Insurance Markets: An Essay on the Economics of Imperfect Information," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 90(4), pages 629-649.
    3. Gruber, Jonathan, 1994. "The Incidence of Mandated Maternity Benefits," American Economic Review, American Economic Association, vol. 84(3), pages 622-641, June.
    4. Shunfeng Song & George S‐F Chu, 1997. "Social Security Reform In China: The Case Of Old‐Age Insurance," Contemporary Economic Policy, Western Economic Association International, vol. 15(2), pages 85-93, April.
    5. Gertler, Paul J., 1998. "On the road to social health insurance: the Asian experience," World Development, Elsevier, vol. 26(4), pages 717-732, April.
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    Cited by:

    1. Jianshen Zhang, 2015. "Study of the Insurance Development in Ethnic Regions of Gansu Province in China," Business and Management Research, Business and Management Research, Sciedu Press, vol. 4(1), pages 83-89, March.
    2. Nong Zhu & Heng-fu Zou, 2006. "Reform of Social Security System in China," CEMA Working Papers 565, China Economics and Management Academy, Central University of Finance and Economics.
    3. Li, Haizheng & Zax, Jeffrey S., 2003. "Labor supply in urban China," Journal of Comparative Economics, Elsevier, vol. 31(4), pages 795-817, December.

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