The Effect Of Pension On Labor Supply

This paper focuses on the present pension insurance system's influence on labor supply in china。The aim of pension insurance 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 insurance may result different labor supply behavior of workers,for one,the pension provide the best way old-age risk aversion for workers:Country and social provide stable and reliable source of income,so absolve worries of workers and make their Whole-hearted work after retirees.In this sense,the pension insurance in favor of labor supply.But the pension insurance on the labor supply there is also a negative side:With the pension insurance system for continuous improvement and expanding coverage,the health status of the elderly have been greatly improved,life expectancy is expected to continue to improve,more and more Personal inclined to make a personal decision to retire early.In a way which led to distortions in the labor market.The pension insurance system has developed more than 50 years in our country,it displays many characteristics,such as covering narrow, diverse,huge hole of found,heavy of enterprise,low social plan level, insufficient system incentive mechanism,lagging legislation,low management socialization and specialized degree etc.It makes different influence to the labor supply behavior of our country's different workers: 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 vertical balanced pension.The legislation system is complete and authority,the law enforcement is strict.Management is specialization,standardization and socialization.The system also should be coordinate with the labor supply system and the labor supply situation,adapt to each kind of worker of the city and countryside,and promote full employment.