IDEAS home Printed from https://ideas.repec.org/a/wly/intssr/v74y2021i1p79-102.html
   My bibliography  Save this article

Extension of social insurance coverage to informal economy workers in China: An administrative and institutional perspective

Author

Listed:
  • Jiwei Qian
  • Zhuoyi Wen

Abstract

This article reviews administrative issues in the context of decentralized social protection in China. In particular, what are the main obstacles to expanding social insurance coverage for workers in the informal economy? Over the last two decades, China has achieved remarkable progress toward universal social protection when this target was set as a national policy priority. However, the social insurance enrolment of informal economy workers still lags significantly behind. This article reviews the application of the International Labour Organization’s definition of informality in the Chinese context and overviews existing pension and health insurances in China. This article discusses the impact of China’s inter‐governmental fiscal relations and decentralized social protection in the multilevel government system. The article highlights that under a system of decentralized managed social insurance many informal economy workers choose to opt out of the system because of low benefits and high compliance costs. This result in deficits in social insurance coverage amongst informal economy workers. Cet article examine des problématiques administratives dans le contexte du système de protection sociale décentralisé dont est dotée la Chine. Les auteurs cherchent en particulier à identifier les principaux obstacles à l’extension de la couverture des travailleurs de l’économie informelle. Ces deux dernières décennies, la Chine a accompli des avancées remarquables sur la voie de l’instauration d’une protection sociale universelle, cet objectif ayant été érigé au rang de priorité nationale. Toutefois, l’affiliation à l’assurance sociale des travailleurs de l’économie informelle accuse encore un retard important. Les auteurs s’intéressent à l’application au contexte chinois de la définition du travail informel selon l’Organisation internationale du Travail et présentent un panorama des régimes d’assurance vieillesse et santé existant en Chine. Ils analysent l’impact des relations budgétaires entre niveaux de gouvernement et de la décentralisation de la protection sociale dans le contexte d’un système de gouvernement à plusieurs niveaux. Ils soulignent que dans un système d’assurance sociale géré de façon décentralisée, beaucoup de travailleurs de l’économie informelle choisissent de ne pas s’affilier parce que les prestations sont faibles et le coût de la conformité élevé. Il en résulte des lacunes de la couverture des travailleurs de l’économie informelle par l’assurance sociale. En este artículo se examinan varias cuestiones administrativas en el marco de la protección social descentralizada en China, en concreto, cuáles son los principales obstáculos para extender la cobertura del seguro social a los trabajadores de la economía informal. En los dos últimos decenios, China ha logrado avances notables hacia la protección social universal desde que estableció este objetivo como prioridad en sus políticas nacionales. Sin embargo, la afiliación de los trabajadores de la economía informal al seguro social sigue siendo muy baja. En este artículo se examina la aplicación de la definición del concepto de informalidad de la Organización Internacional del Trabajo en el contexto chino y se ofrece una visión general de los seguros de pensiones y de salud existentes en el país asiático. Asimismo, se analizan los efectos de las relaciones fiscales intergubernamentales y de la protección social descentralizada de China en el sistema gubernamental de múltiples niveles. En el artículo se pone de relieve que, en un sistema de seguro social administrado de manera descentralizada, muchos trabajadores del sector informal deciden abandonar dicho sistema debido a las bajas prestaciones que reciben a cambio de los altos costos que supone el cumplimiento de las obligaciones, lo que da lugar a una cobertura desigual del seguro social para los trabajadores de la economía informal. Dieser Artikel beleuchtet einige administrative Aspekte des dezentralisierten Sozialschutzes in China. Insbesondere geht es um die Frage, welches die Haupthindernisse für eine Ausweitung der Sozialversicherungsdeckung auf Beschäftigte des informellen Sektors sind. In den vergangenen zwei Jahrzehnten hat China bemerkenswerte Fortschritte auf dem Weg zu einem universellen Sozialschutz erzielt, da dieser zu einer Priorität der nationalen Politik erklärt wurde. Die Aufnahme informell Beschäftigter in eine Sozialversicherungsdeckung hinkt dem Erreichen dieses Ziels allerdings noch deutlich hinterher. In diesem Artikel wird die Anwendung der Definition von Informalität der Internationalen Arbeitsorganisation auf den chinesischen Kontext geprüft, und es wird ein Überblick über die bestehenden Renten‐ und Krankenversicherungen in China gegeben. Anschließend werden die Auswirkungen der Haushaltsbeziehungen der Volksrepublik zwischen den einzelnen Regierungen und der dezentralisierte Sozialschutz im mehrschichtigen chinesischen Regierungssystem diskutiert. Der Artikel weist darauf hin, dass es in einem System dezentral verwalteter Sozialversicherungen viele informell Beschäftigte gibt, die aufgrund der niedrigen Leistungen und der hohen Erfüllungskosten aus dem System austreten. Dies führt zu einer lückenhaften Sozialversicherungsdeckung bei Beschäftigten des informellen Sektors. В статье рассматриваются административные вопросы, возникающие в связи с децентрализацией системы социальной защиты в Китае. В частности, какие основные препятствия стоят на пути расширения охвата социальным страхованием работников неформальной экономики? За два десятилетия с тех пор, как всеобщий охват социальной защиты стал приоритетом национальной политики, Китай достиг значительного прогресса на этом пути. Однако участие работников неформальной экономики в программах социального страхования по‐прежнему значительно отстаёт от поставленной цели. В статье применительно к ситуации в Китае используется определение термина «неформальность» Международной организации труда и содержится краткий обзор действующих в стране систем пенсионного и медицинского страхования. Авторы оценивают влияние внутрибюджетных отношений и децентрализованной социальной защиты на многоуровневую систему государственного управления Китая. Они подчёркивают, что работники неформальных секторов экономики отказываются от участия в децентрализованной системе социального страхования по причине малого размера пособий и высоких затрат на соблюдение требований. Это приводит к недостаточному охвату работников неформальной экономики социальным страхованием. 本文回顾了中国分散式社会保护背景下的行政管理问题, 特别着眼于扩大非正规经济工人社会保险覆盖面的主要障碍。过去二十年间, 中国将全民社会保护确定为国家政策优先事项, 在该领域取得了长足的进展。然而, 非正规经济工人的社会保险参保率仍大幅落后。本文回顾了国际劳工组织非正规定义在中国的适用性, 概述了中国当前养老保险和医疗保险的情况。文章探讨了中国政府间财政关系以及社会保护分散在不同层级政府部门的影响。文章强调, 在分散式管理的社会保险体系中, 许多非正规部门的工人因待遇低、合规成本高等原因选择不参加社会保险, 导致非正规经济工人的社会保险覆盖不足。 يستعرض هذا المقال مسائل إدارية في سياق الحماية الاجتماعية اللامركزية في الصين. وتحديداً، ما هي أهم العقبات التي تحول دون توسيع نطاق التغطية بالتأمين الاجتماعي ليشمل العاملين في الاقتصاد غير الرسمي؟ وخلال العقدين الماضيين، حققت الصين تقدماً ملحوظاً نحو تحقيق الحماية الاجتماعية الشاملة عندما جُعل من هذا الهدف أولوية سياساتية وطنية. ومع ذلك، لا يزال اشتراك العاملين في الاقتصاد غير الرسمي في خطط التأمين الاجتماعي متأخراً بشكل كبير. ويستعرض هذا المقال تطبيق مفهوم منظمة العمل الدولية للقطاع غير الرسمي في السياق الصيني ويعطي لمحة عامة عن التأمينات الصحية وتأمينات المعاشات التقاعدية الحالية في الصين. ويناقش هذا المقال أثر العلاقات الضريبية الحكومية الدولية للصين والحماية الاجتماعية اللامركزية في نظام الحكومة متعدد المستويات. ويُبرز هذا المقال أن العديد من العاملين في القطاع غير الرسمي يختارون عدم المشاركة في نظام التأمين الاجتماعي المُدار بطريقة لامركزية بسبب المنافع المتدنية وتكاليف الامتثال المرتفعة. ويُسفر ذلك عن عجز في التغطية بالتأمين الاجتماعي في أوساط العاملين في القطاع غير الرسمي. Este artigo analisa questões administrativas no contexto da proteção social descentralizada na China. Em particular, quais são os principais obstáculos da expansão da cobertura do seguro social para trabalhadores da economia informal? Nas últimas duas décadas, a China atingiu um progresso notável em direção à proteção social universal quando esta meta foi definida como uma prioridade da política nacional. No entanto, a inscrição no seguro social de trabalhadores da economia informal ainda está bem defasada. Este artigo analisa a aplicação da definição de informalidade da Organização Internacional do Trabalho no contexto chinês e apresenta uma visão geral dos seguros de aposentadoria e saúde existentes na China. O artigo também discute o impacto das relações fiscais intergovernamentais da China e da proteção social descentralizada no sistema multinível do governo. O artigo destaca que, em um sistema de seguro social de gestão descentralizada, muitos trabalhadores do setor informal optam por sair do sistema devido aos baixos benefícios e altos custos de adesão, o que resulta em déficits na cobertura do seguro social entre os trabalhadores da economia informal.

Suggested Citation

  • 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.
  • Handle: RePEc:wly:intssr:v:74:y:2021:i:1:p:79-102
    DOI: 10.1111/issr.12258
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/issr.12258
    Download Restriction: no

    File URL: https://libkey.io/10.1111/issr.12258?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. World Bank & the People’s Republic of China Development Research Center of the State Council, 2014. "Urban China : Toward Efficient, Inclusive, and Sustainable Urbanization," World Bank Publications - Books, The World Bank Group, number 18865.
    2. Mario Gilli & Yuan Li & Jiwei Qian, 2018. "Logrolling under fragmented authoritarianism: theory and evidence from China," Public Choice, Springer, vol. 175(1), pages 197-214, April.
    3. Ravi Kanbur, 2017. "Informality: Causes, consequences and policy responses," Review of Development Economics, Wiley Blackwell, vol. 21(4), pages 939-961, November.
    4. Maurizio, Roxana. & Vásquez, Gustavo., 2019. "Formal salaried employment generation and transition to formality in developing countries the case of Latin America," ILO Working Papers 995050693002676, International Labour Organization.
    5. Jiwei Qian & Ka Ho Mok, 2016. "Dual Decentralization and Fragmented Authoritarianism in Governance: Crowding Out among Social Programmes in China," Public Administration & Development, Blackwell Publishing, vol. 36(3), pages 185-197, August.
    6. 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.
    7. Liu, Jun-Qiang, 2011. "Dynamics of social health insurance development: Examining the determinants of Chinese basic health insurance coverage with panel data," Social Science & Medicine, Elsevier, vol. 73(4), pages 550-558, August.
    8. Jiwei QIAN, 2017. "Increasing Government Social Expenditure and Intergovernmental Fiscal Relations in China," East Asian Policy (EAP), World Scientific Publishing Co. Pte. Ltd., vol. 9(04), pages 101-111, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ling, Wanying & Wang, Senhu & Li, Shuanglong, 2024. "Diversity patterns in non-standard employment and their relationship with self-rated health in urban China from 2010 to 2021," Social Science & Medicine, Elsevier, vol. 348(C).
    2. Petro G. Nzowa & Felix A. Nandonde & Somo M. L. Seimu, 2022. "Moderation effects of co-operative institutions’ capabilities on the relationship between health insurance literacy and participation in health insurance among co-operative members in Tanzania," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 49(4), pages 381-394, December.
    3. Cousins, Mel, 2022. "Elective social insurance systems in developing East and South-East Asian countries," MPRA Paper 114078, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Daniil A. Sitkevich, 2022. "Shadow economy: To legalise or to tolerate?," Journal of New Economy, Ural State University of Economics, vol. 23(3), pages 6-22, October.
    2. Altay Mussurov & Dena Sholk & G. Reza Arabsheibani, 2019. "Informal employment in Kazakhstan: a blessing in disguise?," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 9(2), pages 267-284, June.
    3. Dileni Gunewardena & Abdoulaye Seck, 2020. "Heterogeneity in entrepreneurship in developing countries: Risk, credit, and migration and the entrepreneurial propensity of youth and women," Review of Development Economics, Wiley Blackwell, vol. 24(3), pages 713-725, August.
    4. Xiao Tan & Lei Yu, 2022. "Has recentralisation improved equality? Primary care infrastructure development in China," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 9(2), pages 115-133, May.
    5. Cousins, Mel, 2022. "Elective social insurance systems in developing East and South-East Asian countries," MPRA Paper 114078, University Library of Munich, Germany.
    6. Damien Girollet, 2024. "Digital divides among microenterprises: Evidence from sub‐Saharan Africa," Journal of International Development, John Wiley & Sons, Ltd., vol. 36(2), pages 1350-1380, March.
    7. 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.
    8. Roy Bahl, 2017. "Metropolitan city finances in Asia and the Pacific region: issues, problems and reform options," MPDD Working Paper Series WP/17/04, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    9. Helio Mau-Quei & Michael P. Cameron, 2019. "The Characteristics of the Informal Sector in Timor-Leste," Working Papers in Economics 19/05, University of Waikato.
    10. Liu, Yong & Fan, Peilei & Yue, Wenze & Song, Yan, 2018. "Impacts of land finance on urban sprawl in China: The case of Chongqing," Land Use Policy, Elsevier, vol. 72(C), pages 420-432.
    11. Bosker, Maarten & Deichmann, Uwe & Roberts, Mark, 2018. "Hukou and highways the impact of China's spatial development policies on urbanization and regional inequality," Regional Science and Urban Economics, Elsevier, vol. 71(C), pages 91-109.
    12. Lehmann, Hartmut & Pignatti, Norberto, 2018. "Informal employment relationships and the labor market: Is there segmentation in Ukraine?," Journal of Comparative Economics, Elsevier, vol. 46(3), pages 838-857.
    13. 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.
    14. Jessen, Jonas & Kluve, Jochen, 2021. "The effectiveness of interventions to reduce informality in low- and middle-income countries," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 138.
    15. Fergus Green & Nicholas Stern, 2017. "China's changing economy: implications for its carbon dioxide emissions," Climate Policy, Taylor & Francis Journals, vol. 17(4), pages 423-442, May.
    16. Jingjing Lu & Minmin Jiang & Lu Li & Therese Hesketh, 2019. "Relaxation in the Chinese Hukou System: Effects on Psychosocial Wellbeing of Children Affected by Migration," IJERPH, MDPI, vol. 16(19), pages 1-9, October.
    17. Wei Tian & Liugang Sheng & Hongyan Zhao, 2016. "Special Section: China's Growing Trade and its Role to the World Economy," Pacific Economic Review, Wiley Blackwell, vol. 21(1), pages 84-101, February.
    18. Ravi Kanbur & Tuuli Paukkeri & Jukka Pirttilä & Matti Tuomala, 2018. "Optimal taxation and public provision for poverty reduction," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 25(1), pages 64-98, February.
    19. Lily Kiminami & Shinichi Furuzawa & Akira Kiminami, 2019. "Impacts of multi-functionality of urban agriculture on the creative classes in global mega city: focusing on Shanghai in China," Asia-Pacific Journal of Regional Science, Springer, vol. 3(2), pages 487-515, June.
    20. Yan, Tingting & Wang, Jinxia & Huang, Jikun, 2015. "Urbanization, agricultural water use, and regional and national crop production in China," Ecological Modelling, Elsevier, vol. 318(C), pages 226-235.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:intssr:v:74:y:2021:i:1:p:79-102. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1111/(ISSN)1865-1674 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.