Who benefits more from The New Rural Society Endowment Insurance Program in China:Elderly or Their Adult Children?
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| Title | Who benefits more from The New Rural Society Endowment Insurance Program in China:Elderly or Their Adult Children?
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| Author | Chen Huashuai and Zeng Yi |
| Organization | Business School, Xiangtan University; Center for Aging, Duke University, USA;National School of Development, Peking University; Center for Aging, Duke University, USA |
| Email | huashuai.chen@gmail.com；zengyi68@gmail.com |
| Key Words | New Rural Society Endowment Insurance; Rural old-age population; Intergenerational Transfers; Crowding-Out Effect; Public Pension |
| Abstract | One of the key questions in evaluation of the performance of the New Rural Society Endowment Insurance Program (NSEI) in China is that how the intergenerational transfers among families will change along with the NSEI reform. Based on Chinese Longitudinal Healthy Longevity Survey (CLHLS) and econometric methods of IV, FE, and PSMDD, the results show that NSEI has significant replacement, or “crowding out”, effects on intergenerational transfers among Chinese families in rural areas. A dollar of pension is associated with a reduction of 80.8 cents of intergenerational transfers from adult children. The elders who attended NSEI received 587.1 RMB, on average, less transfers from adult children in 2011 compared with those who did not attend NSEI, which amounts to 62.7 percent of public pensions by NESI at the same period. Thus, we argue that adult children benefit more from NSEI compared with their old-age parents. The major outcome of NSEI is the alleviation of aged-supporting burden on adult children, rather than the increase of benefit level of elderly. |
| Serial Number | WP481 |
| Time | 2013-06-26 |
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