The Research Of Income Redistribution Effect Of The China’s Basic Pension System

With the deepening of aging-population, the academic and substantivedepartments are focus on the income redistribution of pension system growingly.pension system of the developed countries is provide a learning experience for China,and the social problems also sound a alarm for our system’s improve and perfect byhigh levels of welfare and rising public Expenditure. the pension system is necessarywhich is the symbol of balance powers and responsibilities, appropriate level ofprotection, distributive justice, and the scientific development. Therefore, clarifyingincome redistribution effect of “Social Pooling with Individual Account” of China hasan important theoretical and practical significance.this paper studys redistributioneffect of “Social Pooling with Individual Account” of China just during the realcontext of the population has been entered the aging society, larger gap amongregions, urban and rural areas, richer and poorer.Firstly, this paper systematically analyze and summed up the view of incomeredistribution effects of the pension system at home and abroad, foreign scholarsstudy in inter-generational intra-generational redistributive effects of pay-as-you-go(PAYG), the income redistribution effect of the system transition, the choice ofpension plans, the privatization of the pension system and the income redistributioneffect of factors and so on; domestic scholars focus on the empirical studies ofincome redistribution effects of PAYG system, Social Pooling with IndividualAccount, and institutional Change.Secondly, we sum up the process of historical change and policy practice modelsof pension system in China.With the development of economy and society, China isgradually transition to a social pension which is the “Social Pooling with IndividualAccount” from the initial labor insurance system, and the institutional pension systemby the continued explore practice. Although the practice models of pension are quitedifferent because of the difference in regional economic development, the basicendowment system is progressive unification for urban enterprise workers, flexibleemployment and migrant workers are gradually being incorporated into the basicpension system and the coverage is wider, inclusiveness is getting stronger of “Social Pooling with Individual Account”.Thirdly, this paper builds a general dynamic equilibrium economic theorymodels of “Social Pooling with Individual Account”which based on the generalequilibrium of the purely economy to empirical estimate the income redistributioneffects among different groups by using the method of parameter estimation andnumerical simulation, and to examine the effect of "larger Social Pooling with smallerIndividual Account " and "smaller Social Pooling with larger Individual Account "indifferent groups. the results show that: the “Social Pooling with Individual Account”has an significant income redistribution effect, which shift from the urban-enterpriseworkers to flexible employment, and migrant workers, narrow the gap betweengroups, and the redistribution effect of the system is progressive. The effect of "largerSocial Pooling with smaller Individual Account” is regressive for the urban-enterpriseworkers, personal accounts smaller, the effect of income redistribution moreregressive. But it’s progressive for flexible employment and migrant workers. the“Social Pooling Account” has a stronger redistributive effect.this paper also estimatesthe optimal level of the three groups’ fee, which lower than the existing policies.Finally, this paper provides some views to improve the income distribution andnarrow the income gap by continuing to expand coverage, lowing pension premiumrates, implementing the differential personal accounts and increasing financialtransfer payments to strengthen the redistribution effect of Social Pooling account andpoints out the shortage and the outlook of this study.