Research Of The Efficiency Of The Pension Services

Filial piety is Chinese traditional virtue, but today, due to accelerated population movements, changing family structure and increasing competition pressure, it is difficult for us to take good care of aged parents on the basic necessities of life. With our country ’s aging process is becoming faster and faster, the old-age problem has become one of the most serious problems in our society.Because public pension institutions’ beds are limited, governments encourage private capital to investment in the pension services. As a large number of private pension institutions set up, doing researches on the efficiency of pension services industry to find out the important factors that restrict the efficiency have important meanings in helping the industry’s development.This study selected data,like per capital consumption, the number of people over 65 years old, the proportion of population participating in medical and pension insurance, pension institutions’ capital stock and number of beds of every provinces during 2005 to 2012 from China Statistical Yearbook. Then, in order to estimate efficiency of of China’s pension services, this study used BBC model of non parametric data envelopment analysis method with different Index to do three empirical analysis. It is found that:(1) From the overall perspective, the efficiency of pension services industry is low and the scale return is decreasing, mainly because of the low pure technical efficiency.(2) In eastern region, resources of pension services industry is relatively concentrated on one hand, and the scale return is decreasing on the other hand. So is the same with pension services industry in middle region, but the problem is not so serious. Pension services industry in western region has insufficient resources and the scale return is increasing.(3) When bed number is selected as input indicator separately, it is found that pension services is low efficiency while the scale effect is nearly efficiency, and pure technical efficiency is low while scale returns is increasing. It means that bed number is insufficient, while other resources are relatively concentrated.In addition, this study used fixed effect model to make multiple linear regression analysis on factors affecting the efficiency of pension services. It is founded that:(1) All output indicators of pension services are significantly positive related with bed number per capital no matter in eastern, middle and western regions, and the correlation coefficient is largest in western region.(2) Output indicators of pension services is significantly negative related with per capital consumption in eastern region, while the correlations are significantly positive in middle and western region.(3) Nationally, the efficiency of pension services industry is negatively correlated with per capital consumption.In view of the above conclusions, this study put forward following suggestions:(1) Pension institutions should strive for preferential policies from the government to solve the problem of insufficient effective demand; At the same time Pension institutions should hire professional staff and encourage employees to participate in professional training in order to improve the quality of service.(2) Industry association should play its organizational, service and supervision function to help pension institutions to improve the occupancy rate and efficiency.(3) Government departments should not only to give preferential policies but also to ensure the implementation of the policies.