Research On The Influence Of Pension Income On Rural Elderly Labor Supply

It is well known that,labor participation rate of rural elderly population in China maintains a higher level,which is due to the lack of old-age security.With the rapid development of the new rural social endowment insurance in rural areas from point to surface,the endowment insurance system for urban and rural residents has developed into a unified new stage.For this reason,as a fundamental old-age security,it argues that whether the new rural pension can alleviate the labor burden of the rural elderly,or achieve the goal of provision for old age?Especially for the different characteristics of the rural elderly,whether the new rural pension can have a significant impact on its labor supply behavior?In addition,when rural multi-level old-age security system is gradually architecture,does some other types of pension(except the new rural pension)will also affect the rural elderly labor practices?In this paper,it firstly reviewed the current situation of rural old-age security in China by adopted a institutional framework under the multi-pillar pension;secondly,it analyzed the lower level of protection of the rural elderly labor supply situation;thirdly,in order to analyze the impact of pension on rural elderly labor supply,it adopted a quantitative inspection by selecting data from CHARLS 2011 and 2013;lastly,this paper provided suggestions on how to improve the rural old-age security system which is based on the previous empirical results.The principal conclusions are as follows:(1)the reduction of pension income causes a considerable reduction of the labor supply of the rural elderly.The pensions of New Rural Social Endowment Insurance,Commercial endowment insurance and Old Age Allowance have significant negative influences on elderly people's agricultural labor time in the rural area.In other words,if rural elderly people gain more pensions it leads to the less agricultural labor time;(2)comparing with some other pensions,the new rural pension has a more significant influence on the labor supply of elderly.This because only few rural elderly have received the pensions which lead other pension income generated by the role of dispersion is relatively large so that has not been an obvious income effect on the agricultural labor time of elderly;(3)the economic support within the family has obvious influence on the labor supply of the rural elderly.This means that the children's financial support can significantly reduce the rural elderly labor supply,and the children's financial support for rural elderly labor supply is greater than the influence of the new rural pension for rural elderly labor supply.It also means that family security still plays an irreplaceable role in the present.Based on the above conclusions,this paper proposed that it is necessarily to establish old-age allowance as zero pillar,with the basic pension a the first pillar,personal accounts of urban and rural social endowment insurance as the second pillar,commercial endowment insurance as the third pillar,family security as the fourth pillar of the rural multi-pillar pension security system to improve the actual coverage and security level of the old-age security,so that promotes the rural residents to achieve the goal of provision for old age and share the fruits of economic and social development.