The Income Redistribution Impact Of China’s Pension System

Social pension insurance system is one of the most important measures of redistribution mechanism. It has different redistribution effect on the residents income and property distribution. Currently, the pension insurance system in our country which called “social pooling with individual account” has run into a relatively stable period. How about the redistribution effect of the current system? It is not only closely related to the value orientation of pension insurance system reform, but also about whether current system is sustainable development. Also, it has a directive influence on studying incentive mechanism and deciding the future direction of pension insurance system.In the present thesis, the overlapping generation model is used to analyze the redistribution effect of the endowment insurance system under the different financing model from the perspective of welfare economics. Theoretical analysis shows that the pay-as-you-go pension system is pareto efficient, and the accumulation fund system doesn’t show a pareto improvement. For the endowment insurance system of "social pooling with individual account", the part from pay-as-you-go is in redistribution. If the rate of population growth, labor productivity and capital yield in the future estimates reasonably, it is beneficial to realize the maximization of the benefits of the system. Then, according to China’s "decision" in 2005, the author establishes a endowment insurance actuarial model for lifelong benefit and capture and from macroscopic and microscopic perspective respectively, the author stimulates the redistribution effect of the pension system in China. By dividing people into high-income, middle-income and low-income groups, and assuming different age group, gender, the discount rate, average wage growth rate and capture to expend fixed number of year, the author measures the fee payment ratio for the pension system ginseng protect personnel.According to the results of numerical simulation, the pension system in China realize the redistribution effects of Inter-generational and Intra-generational. Also, raising the level of social wage appropriately can improve the pension level of low-income people. What is more, despite we can improve the pension level after retirement through prolonging the retirement age, its fee payment ratio is declining. Finally,it may damage the interests of the participants to a certain degree.