Social insurance reform impacts household welfare differently based on economic status.
The article explores how changes in social insurance can affect household welfare when considering family support through intergenerational transfers. By using a model that reflects the Chinese economy, the researchers found that, on average, households benefit from increased social insurance benefits. However, the impact varies depending on the household's economic status, with some experiencing a loss in welfare. The study breaks down these welfare changes into three main channels: direct policy effects, intergenerational transfers, and general economic effects.