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The Effect Of Pension On Labor Supply

Posted on:2008-10-14Degree:MasterType:Thesis
Country:ChinaCandidate:Y CheFull Text:PDF
GTID:2167360242456275Subject:Quantitative Economics
Abstract/Summary:PDF Full Text Request
The aim of pension in social security system is to secure the basic live of retirees, it can protect the quality and level of living after retire of workers from declining so fast. But different institutional policy of pension may result different labor supply behavior of workers, if the level of pension is higher than the acturial balanced level, workers will reduce the labor supply; if the level of pension is lower than the acturial balanced level, it can't secure the worker basic living, and they will increase the labor supply. In the public sector, the level of social security is higher than the normal level, so the workers will reduce their labor supply and sometimes they will increase their labor supply. In the rural, the level of social security is lower than the normal level, so the farmers will reduce their labor supply. In china, there is not cross and longitunal balanced pension, so what is the effect of pension on laobor supply, empirical analysis must be taken.The paper introduces it's meaning, technical routine and research methods in the beginning. Then the first section give a literature review, mainly review the empirical model of retirement, including nolinear constraint model, option value model, programming model, probit and logistirc model and hazard model. This paper also give an introduction of the result of the application of those empirical model. Section two is the theoretical analysis of the effect of pension on labor supply. Firstly, constitute the theoretical model including the pension variable, and then on the basis of pension institutional longitude and cross inajust, this paper give a hypothesis of the effect of pension on labor supply in china. In section three, using spot check data of qingdao social security bureau and logistic model, there is a obviouse effect of pension on labor supply and workers who have pension will increase the labor supply because of the low rate of pension coverage and the great pressure of employment in china. The conclusion imply that there is a positive effect of pension on labor supply in china. When using the multi-logistic model, there is a similar conclusion. Section four is the conclusion of the paper, there is also the policy implication about the policy of retirement and rural social security and so on. Then is the future research problems.What is the main contribution of this paper is that it is an early usage of the life cycle theory in the effect of pension of labor supply and empirical analysis using logistic model and spot check data of social security bureau of qingdao. Then, there is policy advices of pension in china, the whole research has offered a reference for the system of pension in china.
Keywords/Search Tags:pension, labor supply, retirement
PDF Full Text Request
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