The Effect Of Pension On Labor Supply Of Rural Elder Men

Aging of population and non-agricultural migration of rural labors make the number of rural elderly increase. The huge outwards migration of rural adults leads to aged labor force in rural area and more elderly participating in rural production. On the other hand, rural elderly take more time to work, which is a burden to their retired life. Social pensions, as the basic guarantee for elderly, have a certain influence on labor demand and suppl. Besides, different levels of social pensions will have various impacts on labor demand and supply. Currently, the prevalent issue in rural area is the low coverage rate of social pensions and low amount of pensions. Rural elderly shoulder a heavy burden of retirement life; therefore, a research of social pensions’influence on rural labor demand and supply will be of great importance to policy-making and easing burden on elderly’retirement life.Against the backdrop of aging problem of rural agricultural production, first part of this thesis points of research meaning, method, and design of the topic, and studies research commentary home.and abroad, including current innovations and improvements of research in this area, and learns and perfects this thesis’s research design. The second parts studies current rural elderly’working condition by means of CHARLS (China Health and Retirement Longitudinal Study), points out the outstanding problems, for instance, high participation rate of rural elderly forces and long working hour, and further analyses underlying causes for elderly to continue to labor. The third part,By studying the irrational part of rural social pensions through the changes of China’s rural social pensions, i.e., currently, rural retirement is mainly supported by off-springs and elderly’own income, traditional retirement patterns haven’t eased the burden on elderly while public pension is just playing a auxiliary role, which is against the original will to establish and perfect social pension scheme.The fourth part introduces influence method of social pensions on labor demand and supply. The analysis points out that there is an uncertain influence on labors who pay social pensions, while for elderly who withdraw pensions directly, it will decrease labor supply. The fifth part utilizes CHARLS data to conduct empirical research in two fields, one is through logit model to study social pensions’influence on labor policy-making, and the other is through least square method to study pension amount’s influence on rural elderly’working hour. The results show that pensions can decrease the labor supply of rural elderly forces, indicating new. rural social pensions have played a positive role in guaranteeing rural elderly’living; hence, diminishing labor burden on elderly.The contribution of this thesis lies in the prior study of rural social pensions’influence on labor demand and supply form a micro scope, namely, CHARLS data. By utilizing logit model to conduct experience analysis on survey data, the thesis points out social pensions can dwindle to some extent rural elderly’labor supply. Based on this finding, the thesis makes a proposal to perfect China’s rural social pension by increasing rural elderly’social pension so that rural elderly don’t have to engage in heavy labor work in agricultural production as income source.