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Identifier to cite or link to this item: https://hdl.handle.net/10086/29762

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Title
Working Longer in China: Implicit Tax or Subsidy?
Creator
Creator Name
Xu, Jing Xu, Jing
Affiliation
Affiliation Name
Shanghai University of Finance & Economics
Creator Name
Wang, Xinmei Wang, Xinmei
Affiliation
Affiliation Name
Institute of Population and Labor Economics, Chinese Academy of Social Sciences
Editor
Contributor Name
一橋大学経済研究所世代間問題研究機構 = Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University
Affiliation
Affiliation Name
Institute of Economic Research, Hitotsubashi University
Key Word
implicit tax
incentives
pension wealth
social security pension
working longer
JEL
C53
C54
H55
Abstract
Using the conventional concept of implicit tax, we investigate pension incentives to retire for private sector employees in China. The social security pension consists of pay-as-you-go defined benefit (DB) and defined contribution (DC) systems. Based on Chinese official parameters and the revised OECD models, our studies conclude that the DB system discourages people from working more, but the DC system offers considerably greater incentives at the expense of financial sustainability. If the annuity factors in the DC scheme were linked to the probability of retirees’ mortality, then both constant incentives to work longer and financial sustainability could be achieved.
Publisher
Institute of Economic Research, Hitotsubashi University
Issued Date
2018-12
Language
English(eng)
Resource Type
technical report
Version Type
VoR
Is Part OfRelation -
Related Title
CIS Discussion paper series ; No. 675
Relation
Related Identifier
URI
  http://cis.ier.hit-u.ac.jp/Japanese/index.html
Number of Pages
21
Sponsorship
the National Natural Science Foundation of China (71673295).
Appears in Collections
CIS Discussion paper series
URL
https://hdl.handle.net/10086/29762