Working Paper Series
Labor Market Conditions and Social Insurance in China
Abstract: Fifteen years after the introduction of highly ambitious
social insurance programs for urban Chinese workers, a large number of them
remain un-insured. This paper examines the relationship between labor
market conditions and social insurance participation among industrial firms
in the pre-crisis years of 2000–2007. I find that increased labor tightness
over this period was a quantitatively important driver of participation.
Comparing different segments of the labor market, stronger response to
tightness is found in sectors with the largest shares of un-insured:
private firms, those with a larger share of low-educated workers, and those
without labor unions. Increased tightness in the years ahead can therefore
be expected to aid policy makers in social insurance implementation and in
combating insurance inequality.
Keywords: Social insurance; Employer participation; Labor market tightness; People’s Republic of China; (follow links to similar papers)
JEL-Codes: D21; J64; J65; (follow links to similar papers)
32 pages, September 5, 2012
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