Change Of China's Basic Old-age Insurance System For Urban Enterprise Workers

The urban enterprise's worker's basic old-age pension system in our courtry has close relation with every urban enterprise's worker. It's very important today when we are building a "harmonious society". Since reform and opening to the outside world, the institution has undergone series of transition, yet people have different opinions about it. This paper uses Institutional changes theories of New Institutional Economics as tools to analyze the urban enterprise's worker's basic old-age pension system changes course of our country. It attempts to know the urban enterprise's worker's basic old-age pension system from a brand new perspective, expand people's horizons, makes people stand in a new height scrutinizing the institutional changes course of our country.The article first introduced the related institutional economic theory and the basic old-age insurance system for urban enterprise workers in our country, then according to the institutional changing order-the starting point, process and the ultimate goal, conducted the research. By analyzing the starting point, it is pointed out that because of it's public goods characteristic and path dependence, the basic endowment insurance system is a mandatory institutional change, which is under the leadership of the government. The initial objective of the institutional change is not clear, which decided it is a gradual change. At the same time, gradual change could adjust the new institution by continual settlement of ongoing conflicts encountered in the process, and under the interaction of the formal and the informal institution, gradual institutional change, a quite safe one, could reduce the cost of institutional change. As it is a important characteristic for institutional gradual change that main contradictions is moved backwards, the "empty account" problem, which is the perplex for the change to further deepen, is just the accumulated result of the institutional gradual change of the basic old-age pension system for urban workers, and the settlement of "empty account" is essential to deepen the institutional change. At present, to establish "the social pool combines with personal account" institution, a partly accumulated institution, is the goal of the institutional change. On the basis of using the institutional change theory of institution economics to carry on qualitative analysis, and using simple A-K model to do quantitative analysis, it is pointed out that the institution choice is one that the government is based on one's own cost - -benefit analysis on the basis of a mandatory institutional change."Empty account" issue is the inevitable result of the main contradiction moving backwards, and the settlement of ""empty account" issue is critical for the institution to set up. The conclusion herein is that we should pay more attention to the settlement of the principal contradiction that lies in the later stage of gradual institutional change, and promote the change to advance to higher level.