China’s Plan To Delay Retirement

The efficiency level and fairness degree of income distribution are very important to the healthy and sustainable development of a country’s economy.The income gap is scientific and reasonable,which can improve the working enthusiasm of the residents,guarantee the harmony and stability of the society,and promote the economic growth.On the contrary,the lack of effective demand and the fact that the total social supply is greater than the total social demand may undermine the stable environment needed for economic development.Since 2009,the Ministry of Human Resources and Social Security and other authorities have issued guidance on several occasions.China has implemented a series of measures to adjust the income gap,but the mandatory retirement age,an important component of the income distribution system,still follows earlier policies.Since the beginning of the 21st century,China’s economic growth has been slowing down,the aging of the population is accelerating,the burden of supporting the labor force is increasing,and the pressure on the payment of basic state pension is increasing year by year.The early retirement age system obviously does not conform to China’s practice,and the policy of postponing the retirement age is on the way.But the specific policy has not been implemented,one of the reasons is that the existing research on the effect of delayed retirement policy has not been able to make the government and people trust the results.This paper analyzes the current situation,and uses theoretical analysis and empirical analysis to discuss the impact of delayed retirement on the income gap in detail,hoping to play a positive role in improving the policy of delayed retirement.In terms of the status quo analysis,this paper analyzes the current income gap in China from six perspectives,namely,urban and rural areas,urban interior,rural interior,industry,region and company interior,and summarizes some of the experience of international delayed retirement policy and some of the progress of China’s delayed retirement policy.In terms of theory,the economic model is used to deduce that delayed retirement will widen China’s income gap,fine-tuning will be more beneficial to social development,the flexible delayed retirement system has an adjustment effect on income distribution,and the complete fund system should be paid more attention to in the pension transition process to narrow the income gap.In empirical aspect,in the case of data available,the empirical analysis was conducted to collect data at the provincial level to supplement the field study,and collect the data,in urban and rural income than replace results demonstrate the robustness of the gini coefficient,the conclusion is as follows:first,to raise the retirement age increased the labor supply,the working-age population and the relationship between the income gap appears"U" type,the total working-age population is already over the "U" type curve is low,so the retirement age delay will make the residents’ income gap is larger;Second,the delay in retirement results in changes in the age structure of the labor market and an increase in the proportion of elderly workers,resulting in an increase in the income gap.Combining the two,delaying retirement increases the income gap.The results of the comprehensive normative analysis and empirical analysis show that the implementation of the late retirement policy in China will certainly have a negative impact on the income gap of residents,so the implementation of the late retirement policy must take its impact on the income gap into consideration,so as to find a scientific and reasonable retirement age policy.Based on the analysis results of this paper and the specific measures of retirement postponement policies in some developed countries,I put forward the following Suggestions:While implementing the retirement postponement policy,we should strengthen economic construction,narrow the income gap between urban and rural areas,optimize the industrial structure,take measures to guide the coordinated development of the labor market,and support the two-child policy.In addition,different regions and provinces should adopt different measures to implement the policy of postponing retirement,and pay attention to the differences between industries,so as to encourage low-income industries to delay retirement and accept normal retirement.In addition,the policy of delaying retirement should be connected with the endowment insurance system to make them adapt to each other.The innovation of this paper is that the previous studies on the policy of delaying retirement did not consider the impact of the change of retirement age on the income gap.This paper analyzes the impact of the increase of retirement age on the income gap of residents by analyzing the current situation,constructing theoretical models and conducting empirical tests.In addition,we have found two channels for delaying retirement to affect the income gap:first,by increasing the supply of labor;Second,increase the proportion of elderly workers.It provides an idea for perfecting the policy of postponing retirement.The shortcomings of this paper,on the one hand,are that the model constructed is relatively simple,which may lead to the interpretation role of the model is not comprehensive.On the other hand,because some data are not available,this paper has limitations,but the empirical analysis of this paper provides supplementary proof for other analyses,and is in line with the situation of retirement age in some developed countries.From this perspective,the empirical analysis of this paper also has certain practical significance.With the update of the data,I hope to improve it.