The Impacts Of Old-age Insurance System On Labor Supply In China

Labor is the source of economic growth,the old-age insurance system impact the labor supply,so profound impact economic development.The implementation of the family planning policy changes age structure in the future,China has entered the aging society.sufficient labor supply and low dependency rate of the population will no longer.Maximize the labor supply is the key to economic growth.This paper is divided into four parts:Old-age insurance system on the labor supply from a theoretical perspective.Labor supply is divided into two dimensions:the supply quantity and quality of supply.Old-age insurance system impact on the labor supply:First,different financing models produce different effects of the labor supply.Second,the retirement policy for the elderly.Third,the National Defined Contribution is a system of innovation,Its advantage is the low cost of system restructuring and a good incentive structure and less labor market distortions.Old-age insurance system affects the quality of the labor supply too:First,the old-age insurance system affect human capital.Second,the old-age insurance system affect the flow of labor.Old-age insurance system on the labor supply realistic analysis.Experience from abroad reveals the old-age insurance system for early retirement to become increasingly common in recent years.Social security taxes inhibits the youth labor supply,workers in some countries to avoid non-formal sector employment.the old-age insurance system has some problems in China:old-age insurance leads to lower lower labor force participation rate;old-age insurance system hindered the division of labor mobility;low coverage of the system inhibits the human capital accumulation.The optimization of labor supply in terms of improving the old-age insurance system:raising the retirement age and making the retirement system flexible.expanding coverage promoted on the basis of the old-age insurance portability.