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The impact of the New Rural Pension Scheme on labor supply of intra-household prime-age adults in rural China

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  • Xinxin Ma

Abstract

Does the New Rural Pension Scheme (NRPS) affect labor supply of intra-household prime-age adults in China? This study provides evidence using the natural experiment model (DID model) and Chinese Health and Nutrition Survey (CHNS) longitudinal survey data from 2000 to 2011. Four major conclusions emerge. First, the influence of the NRPS on labor supply of intra-household prime-age adults is not statistically significant. Second, the effects of the NRPS on labor supply differ for various groups. For example, the negative effect of NRPS on the probability of entering regular work is greater for women; the effect of NRPS the probability of becoming irregular workers is positive for the group aged 25 to 34, whereas they are negative for other age groups. Third, for the mechanisms, both the household income hypothesis and child care support hypothesis are supported, but the household income effect is small.

Suggested Citation

  • Xinxin Ma, 2020. "The impact of the New Rural Pension Scheme on labor supply of intra-household prime-age adults in rural China," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 18(1), pages 51-72, July.
    • Handle: RePEc:taf:jocebs:v:18:y:2020:i:1:p:51-72
    DOI: 10.1080/14765284.2019.1663694
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    Cited by:

    1. Zhan, Peng & Ma, Xinxin & Li, Shi, 2021. "Migration, population aging, and income inequality in China," Journal of Asian Economics, Elsevier, vol. 76(C).
    2. Xinxin Ma, 2022. "Grandchildren Care and Labor Supply of Middle-Aged Grandmothers: Evidence from China," Journal of Family and Economic Issues, Springer, vol. 43(3), pages 581-598, September.

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