Labor Market Conditions and Social Insurance in China (IFN Working Paper No. 924)

TitleLabor Market Conditions and Social Insurance in China (IFN Working Paper No. 924)
Publication TypeReport
Year of Publication2014
AuthorsRickne, Johanna
Date Published2014/10/14
InstitutionResearch Institute of Industrial Economics (IFN)
CityStockholm, Sweden
KeywordsChina, employer participation, labor market tightness, People’s Republic of China, social insurance
Abstract

Fifteen years after the introduction of highly ambitious social insurance programs for urban Chinese workers, a large number of them remain un-insured. This paper examines the relationship between labor market conditions and social insurance participation among industrial firms in the pre-crisis years of 2000-2007. I find that increased labor tightness over this period was a quantitatively important driver of participation. Comparing different segments of the labor market, stronger response to tightness is found in sectors with the largest shares of un-insured: private firms, those with a larger share of low-educated workers, and those without labor unions. Increased tightness in the years ahead can therefore be expected to aid policy makers in social insurance implementation and in combating insurance inequality.

URLhttp://ssrn.com/abstract=2509962