How Does The Layered Pension Systerm Expand The Income Gap Between Groups

As an important social security projects,our pension system is due to ensure the basic life of the elders and also to promote social fairness by means of narrowing the income gap During all the years, our pension system has made great progress, workers of different economic ownerships and employment types have been included within the security system, even urban and rural residents as non-employment groups are in the old-age security system too. However, China’s pension system has exposed some problems, such as the institutional segmentation and the huge treatment gab.In this way,the actual effect of the redistribution of the pension system has been questioned.In this paper, the method of logit regression and linear regression are used in the analysis of the access and treatment of the pension system,in order to illustrate the stratification effect that existing in the pension system.This article points out that the highly coupled relationship between the system’s stratification and social stratification,which weakens the redistribution effect of the pension system, then use the method of actuarial analysis to calculate the pension system’s real effect of redistribution, and to reveal the reverse redistribution effect in the pension systerm. This paper also use the Gene coefficient to illustrate the expanding effect of pension systerm on the income gap of different classes.China’s pension system reflects the country’s political intentions, and the design of previous system will lock the path of policy development, causing the path dependence effect of institutional development, this is the reason why China’s pension system is stratified.The upper social classes have the advantage in the redistribution of pension systerm, this lead to the difficulties that China’s pension system has faced,and all this is due to the involution of our welfare system. To make a conclusion, our current pension system fails to narrow the income gap between different groups,however,in a institutional way, expands the income gap which is formed by the market.layered rights and market lead to the involution of China’s welfare system,which damages the redistribution function of the pension systerm and make it the institutional cause of the income gap.