Social Sciences
8 years ago

Social security reform in urban China boosts income for low-income groups.

Contemporary Economic Policy
INCOME REDISTRIBUTION IN URBAN CHINA BY SOCIAL SECURITY SYSTEM—AN EMPIRICAL ANALYSIS BASED ON ANNUAL AND LIFETIME INCOME
HE Li-xin, Hiroshi Satō

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This article looks at how social security in urban China affects income distribution. The study used data from 1995 and 2002 to find that public pensions are crucial for elderly people in China. While social security has helped low-income and older individuals, it hasn't reduced income inequality. Both low and high-income groups benefit from the system, but the rich benefit more. The pension system could have a bigger impact on income distribution if it was more progressive.