The Economic Research On The Pension System Of The Chinese Rural Migrant Workers

Since the Chinese policy of opening reform, the dual economic structure of China has not totally changed, but the step of itergration of urban and rural areas are never stopped. A large muber of spare rural labor forces liberated from farm are continuously moving to the cities. They become the industial workers. Two things have to be emphasized presently: the first is the economic situation in the cities need the service from these rural migrant workers are uncertainty and unregular At the same time, the chance of rapidly impelling the social status reform, changing their identification of rural residentship, still seems to be not mature. Thus frequently moving between the different cities or from the urban to the rural areas is the essential characters of these workers, which can easily lead to ruin the accumulation of their pension benefits. Their human capital therefore can not be effectively appreciated.From the year of 1998 to 2009, the pension policy series about the urban employees and rural residents issued by the government both showed more welcome regulations to the ural migrant workers. Now they can have two chances when serving for the cities from their hometown:one is to join the urban workers'social pension system, the other is to take part in the new type rural social pension plan.The author builds a income-consumption balance model to compare the situation of the rural migrant workers and urban employees as well as the rural residents based on the analysis of the reason which they were born socially and economically and increase rapidly, the future of their numbers and living location distribution, the general type of their income and the consuming lifestyle. Further, in order to figour out the opitimum behaviroral choice of the rural migrant workers is, the author mainly focuses on the general pension benefit level of them, watching the four important issues, such as the correlation of pension contribution rate and the replacement ratio, the relevant human capital present values and the line of smooth consumption, the curve of the personal finance lifecycle and the worriless survival age as well as the most affected indexes.After the detailed comparison between the rural migrant workers and the urban employees, the author concludes that newly issued plicy of The Temporary Regulation of The Urban Residents' Pension Benefit Transferring and Connecting " by the State concil of China further strengthen its equity, accessibility and benefit portability than before. Its definite open-door statement can build the stable pension expectation for the rural migrant workers, which helping accelerate the transform of their social status from farmers to urban inhabitants. It can lead them to build the willingness to increase the labor income through the investment of education, training and skill practice, so as to improve the ability of living in the cities. Also, it can cause the integration and appreciation of their human capital, which may form the potential consumption to economically contribute to enlarge domestic demands once they spend their pension income at the retirement age. From the long run, it can help opitimize the economic structure, hopfully guaranteeing the long term development of China. While by the comparison analysis of pension benefits of rural migrant workers and rural residents under the new style rural social pension system, the conclusion can be drown that the goal of achieving the social security in the old age can be realized in a certain, their pension along with the whole life smooth consumption level are generally a bit higher than those rural residents who never leave the village. Yet their economic and social status would not be changed much on the whole.At last, the author points out that the truly status transferring from the rural esidentship to the urban emplyeeship which means that in the end the rural migrant workers can retire and live in the cities will still rely on the other relevant policies that should be issued in the future, such as the more flexible contribution and distribution pension plan regulations, the reform of the residentship system, the improving mend of housing, education, taxes paying, and consuming supplement policies, the wide spread and effective exploration of the city culture and city identification recognition. Because of this, the Chinese governmrnts of all levels have to face the challenge of the huge cost of implementing the above policies. Once the probable changes of economic environments come, the chances of the pension policies'variation are to be expected.