The Impact Of Employment On Post-retirement Age In China

Intensified in the aging of our population, longer life expectancy, retirement age policy become old, pension expenditure pressures fade and the employment situation is grim, which cause the delay retirement is considered to be a reform direction for China’s current pension insurance system. But it has negative effect to China’s employment because of raising the retirement age will reduce the release amount of social work post, and increase the total supply of labor which makes the studing of The impact of employment on Post-retirement Age in China has a strong practical significance. We first introduce the research background and significance of this paper and analyze our country Post-retirement Age’ s restrictive factors and China’s employment situation. Then from the point of economic growth, new industrialization and urbanization, labor market, social insurance, human capital investment to elaborated the main factors influence the employment rate of our country. According to the analysis of the previous to selecte appropriate variables, collect and deal with the relevant data, through the software SPSS 18.0, use ridge regression method to establish an empirical model to study of the labor market effect of Post-retirement Age. The empirical result indicates that a year delayed working age population, the hysteresis ratio, GDP and tertiary industry will significant influence China’s unemployment rate. In the other conditions remain unchanged, currently, the retirement age delay one year old annually lead to the population increase 0.1 million, the unemployment rate will increase by 0.5 percentage points, the employment rate will reduced by 0.5 percentage points. This shows that Post-retirement Age to fast will have some negative impact on China’s employment rate and then lead to a decline in employment. Finally, according to the conclusions of theoretical analysis and empirical analysis put forward relevant policy recommendations:to delay retirement age policy implementation should be step by step, formulate reasonable gradual retirement plan; construct and reform the supporting system of Post-retirement Age to reduce negative impact of China’s labor market.