Shanghai Town Worker Is Basic Endowment Insurance And The Income Distribution Effects

Shanghai, the per capita GDP is among the nation’s top, but it is facing the seriously aging problem. There is very real meaning to study the social security in Shanghai. The main purpose of government to establish the pension insurance system is to protect the basic standard of living of the elderly to prevent poverty in old age, to achieve the function of distribution of social income with intervention. Therefore, the thesis is devoted to analysis the income redistribution of the urban basic old-age insurance policies, to examine the rationality of the system parameters, at the same time to simulate and analysis the effect of income distribution in the different policy design. The research approach of this paper is to analysis current situation of urban workers pension insurance in Shanghai, how is the income distribution, the rationality of the system parameter design, the difference of different parameters in the distribution of income affects. There is a more comprehensive study of urban basic old-age insurance in Shanghai, including the income distributional effects, different aspects of pension system, especially the degree of redistribution of income in each industry in this paper. I have also work out the appropriate payment level and the replacement rate, sustainability of the policy, different simulation of redistribution of income with different system parameters. There is some meaning for Shanghai endowment insurance policy decisions.Chapter I introduces the background and meaning of the topic, the main framework and research methods. Chapter II gives literature review of the income distribution of the pension insurance, the difference of different models, the introduction of the income distribution analysis method. The third chapter begins with a review for Shanghai’s urban pension insurance policies before the description of the current situation of Shanghai’s old-age insurance, and then analysis income distribution effects of different income groups under the current policy with simulation of individual life-cycle pension transfer and internal rate of return, especially for the different industries. Chapter4gives the appropriate contribution rate and the replacement rate according to the Shanghai production capacity, the personal consumption, take financial stress tests for the current policy, then simulates the distribution of income of the pension insurance design by changing the system parameters. Chapter5answers questions about the old-age insurance for urban workers in Shanghai, makes the summary of this essay, and gives practical advice for the government.This research finds that Shanghai basic old-age insurance for urban workers has progressivity from the perspective of industries. While there are some problems such as the excessive burden for enterprise to pay on the insurance, the pension payments crisis with the intensification of the aging in future50years, the shortage to meet the basic consumption of low-income groups with current replacement rate, and other.