On The Problem Of Financing For Migrant Workers' Pension

Along with the deepening of the reconstruction of rural economy in China, alarge number of farmers have been liberated from the farmland, entered to the cities,and have formed a large group of migrant workers. The migrant workers in cities havebeen becoming an important component of industrial workers, and they are animportant force in China's economic construction. However, the China's economyand society are transforming at present. Migrant workers, who are the transfer of rurallabors to urban groups, have become the marginalized groups in city. On the one hand,the rural social-security relying on land contracts is in fact unable to avoid kinds ofmarket risks, faced by non-agricultural employment. On the other hand, migrantworkers have been excluded from the social-security in city. They have no equal rightthat the urban labors have, and have no basic old-age insurance generally. With thedeepening of the urban social security system reform, the social security for migrantworkers cause for concern. And it has become a critical problem both on theory andpolicy.See from the existing modes of practice, some local governments' pensioninsurance policy for migrant workers particularly have not been supported by migrantworkers and their employer. And the finance for the insurance fund is facing certaindifficulties. In the opinion of this dissertation, financing for migrant workers' pensionis very difficult because of the dual structure of urban labor market fundamentally. InChina, dualistic economic structure makes the division between urban and rural areas,and urban labor market gradually differentiated into two markets in the process ofeconomic restructuring. Contrast to formal employment and the primary market,migrant workers are employed in secondary market. In this market, there are a largenumber of migrant workers, whose quality is not high, and there no standardizedmanagement and effective legal protection. This dual structure of the urban labormarket decide the preferences and behavior of government, employers and migrantworkers, which decide the performance of the old-age insurance system finally.This dissertation's body part altogether consists of four parts. Part one sorts out the general theory of financing for the social security. Part two review the revolutionof migrant workers' old-age insurance policy from the perspective of raising pensions,and compares the existing models. Part three points out that these policies fail to getideal implementing effects, the old-age insurance fund for migrant workers facingtremendous difficulties. It also analyzes the root of the economic hardship from thedual structure of the urban labor market. Part five puts forward some countermeasuresand suggestions.