Research On The Effect And The Strategies Of The Flexible Retirement Policy On The Labor Market Supply

With the population aging process and implicit pension debt expansion, China’scurrent legal retirement age system already can’t adapt to the requirement of socialeconomic development. The calls for unemployed workers, and the staff with primaryskills hope to retire ahead of schedule and the appearance of the skilled retirees returning,provide actual basis for further reform of the retirement system.On October1,2010, Shanghai began to implement the pilot bill of various types oftalents delay applying for the basic pensions flexible on the enterprises. With the policybackground, combined with the forecasting result of the Shanghai labor supply, based onthe life cycle theory and labor supply and demand theory in the labor economics, theauthor analyzed the impact of the flexible retirement policy of labor supply quantitativelyand how to choose the best flexible retirement time and manners to meet the balance of thelabor market supply and demand, in order to achieve the double effect of full employmentand the full use of human resources in the labor market, which has great practical andtheoretical significance for sustainable development of the endowment insurance system ofShanghai.The thesis consists of four parts：The first part introduced the background、the aim、the significance of the thesis,literature reviews, research methods and ideas based on the conditions and problems of theretirement age in China.The second part is theoretical basis and policy definition, which introduce some basicconcept, such as the flexible retirement policy. In the meanwhile,the author analyzed thepolicies of the statutory retirement age， flexible retirement policy, and pointed thedifferences among the policies. And then the author predicted the labor supply of Shanghaiusing dynamic population model and introduced the current labor supply of Shanghai.The third part analyzed the theoretical effect of the flexible retirement policy on the labor makert supply, including the effect of the early retirement and the delay retirement,and the relation between the unemployment rate and the delay retirement. The authorintroduced the empirical effect of the flexible retirement policy on the labor makert supply.The author designed questionnaire, and analyzed the data.The fourth part provided some suggestions, including the principle of implementingthe flexible retirement policy and some advices on how to achieve the full employment oflabor market.The innovation of the thesis lies in the analysis of the theoretical and practical effecton the labour market supply of the flexible retirement policy by using labor supplyeconomics theory, According to the relation between the population dependency ratio andthe wage rate, the author proposed reasonable measurants to carry out the flexibleretirement.