Research Of Basic Social Insurance’ Impact On Job Lock In China

The basic social insurance is a price compensation form for the labor force’s work,which is an important part of the work welfare.This paper aims at the basic pension insurance and medical insurance designed to provide workers with the necessary pension and medical security explore these two important insurance projects on the impact of job lock.In China,due to the way of payment,and the imperfect provisions of the transfer and continuation of the work will inevitably lead to certain benefits of additional losses,hindering the work of changes.Based on the micro-survey matching data of China Family Panel Survey(CFPS)in 2012 and 2014,this paper takes the basic pension insurance and medical insurance as an example to identify two problem that the existence and size of job locking effect in China labor market from the perspectives of job continuity and job change.This paper first discusses the impact mechanism of basic insurance on job locking,and then introduces five corresponding job locking hypothesis on the basis of the relevant social security system in China.Then through the analysis of the microscopic angle,It is found that there are obvious differences in the duration and change of work between having insurance employee and not having insurance employee in China’s current labor force.At the beginning of the perspective of job continuity,Ordinary Least Square estimation method is used to estimate the basic pension insurance provided by the unit,the basic medical insurance and both insurance coverage will be extended by an average of 2.6088,3.1916 and 3.2724 respectively Years of service.This result indicates a significant job locking effect.Then using the Propensity Score Matching under various algorithms,it is found that there is obvious job locking effect after controlling the observable heterogeneity,but the locking effect is reduced.Finally,the paper uses the constructive insurance rate as the instrumental variable to establish the treatment effects model.It is found that the locking effect is still significant,and without considering the endogenous treatment underestimates the effect.Based on the Probit model,it is estimated that the basic pension insurance,basic medical insurance and both insurance coverage will reduce the average probability of job change by 9.67%,9.41%and 10.6%respectively under the perspective of job change.Then after the Propensity Score Matching the result is found the job locking effect is obvious but slightly reduced.Finally,this paper considers the endogenous problem using the Instrumental Variable Probit model and makes a conclusion ignoring the endogenous problems will underestimate the locking effect.In addition,a series of robustness tests are made for the analysis under the two perspectives,all supporting the conclusions.On the basis of the empirical results,this paper gives some suggestions from both the enterprise and the state.Specifically,the employers at the enterprise level should treat correctly the basic insurance for the employees,play the role of the locking effect in the adjustment of human resources and the state level of the government should raise the insured rate to maintain fairness,regulate the transfer to improve the efficiency of resource allocation and so on.