Research On The Factors In Flexible Employment Pension Insurance In Fujian Province

With the continuous rapid development of China’s market economy and the continuing optimization and upgrading of industrial structure, our labor force structure has undergone enormous changes, of which the increase in flexible employment is most notable(the proportion in total employment population tends to go way up). As another way to ease the employment problems, the flexible employment suddenly emerges to replace the traditional employment patterns and becomes the mainstream of China’s employment market. So the Party Congress report pointed out the needs to actively guide people to accept new employment patterns, to have diversified forms of employment, and to advocate self-employment and starting one’s own businessesSince the early21st century, China has began to develop the flexible employment pension insurance system, pushing from some pilot cities to the whole country. Whereas, some people can’t afford to join the flexible employment pension insurance system. This huge gap in social security system plants a serious hazard in the stability and unity of our society, as the flexible employment rapidly expands and the aging of our society keeps pushing up. On the other hand, the traditional basic pension insurance system, which was born in the planned economy system, has poor compatibility with the flexible employment pension insurance system, which leads to duality, reverse incentives and other issues. Besides, the flexible employment groups generally pay at low levels in a rather short period, which puts up a huge challenge to the sustainable development of the social security system. The above two issues need to be looked into and studied in the contribution capability of the flexible employment groups, their awareness and expectations of social security system, and the compatibility and flexibility of social security system.According to the basic theories of Social Security System, this study first presents an in-depth exposition of some professional terms in the flexible employment pension insurance system, and then a brief review of the development of China’s basic pension insurance system, which is followed by an analysis of status of Fujian’s flexible employment pension insurance and the current policies. Through empirical analysis, it reveals that the low participation rate of flexible employment pension insurance in Fujian is a result of both inner factors such as income, age, education level, and the satisfaction of basic pension insurance system. Finally, combining typical foreign experience in designing the flexible employment pension insurance system, it provides some suggestions for Fujian province in payment collection mechanism, incentive mechanism, and improvements in laws and regulations to achieve a win-win situation of raising the participation rate of flexible employment pension, and keeping the social security system fair and efficient at the same time.