The Study Of Impact Of Urban And Rural Pension Insurance On Labor Supply Of The Rural Elderly And Intergenerational Effects

Due to the rapid development of economics,Chinese society has gone through a big change.The traditional pattern of family supporting cannot sustain.Lacking sufficient means of support,the elderly have to work their entire lives.So the "retirement" pattern of the Chinese elderly is described as "ceaseless toil".As the Chinese aging aggravates,Chinese government implement urban and rural pension insurance to protect their basic living.Will urban and rural pension insurance which is a kind of exogenous shock has effect on the behavior of micro subject?The paper evaluates the effect of urban and rural pension insurance on formal labor supply and the time of taking care of grandchildren of the rural elderly to answer this question.This paper is about two questions:(1)Dose the urban and rural pension insurance decrease the formal labor supply of the rural elderly?(2)Dose the urban and rural pension insurance have effect on the time of taking care of grandchildren of the rural elderly?We have two conclusions:(1)According to the statistical result of full samples,urban and rural pension insurance has no effect on formal labor supply of the rural elderly.The result about the regression of regional sample shows that it has a significant impact on labor supply of the rural elderly in western China.However,their situation of "ceaseless toil" has not fundamental improvement.Urban and rural pension insurance has no effect on formal labor supply of the rural elderly in other regions.Present level of pension could not improve the labor situation of the rural elderly.So the next step of reform of urban and rural pension insurance,we think,is to improve the level of pension.(2)Urban and rural pension insurance has no effect on the time of taking care of grandchildren of the rural elderly.However,the basic pension has negative effect on the time of taking care of grandchildren of the rural elderly.With the increase of elderly age,taking care of grandchildren will cause hurt of health and economics to them.When the pension looses their budget constrain,the rural elderly will decrease their time of taking care of grandchildren and enjoy more leisure.In the summary,employing fuzzy regression discontinuity method,the dissertation combined theoretical and empirical analysis to explain the effect mechanism of urban and rural pension insurance on labor supply of the rural elderly.The dissertation may have contributed to related theoretical study and practice in the follow way:Firstly,we take the variable of the time of taking care of grandchildren into our study which widens the research category of urban and rural pension insurance.Secondly,we test what effect exogenous shock will have on the behavior of micro subject.Finally,the paper's empirical results can provide the basis for related policy reform.