Analysis On The Effect Of Delayed Retirement On Labor Supply In China

The aging of the population is a common problem in the world. In recent years, The problem is becoming more and more serious. In order to solve the problem, some countries in the world, especially the developed countries have adjusted their statutory retirement age. In our country, the increasing problems of population aging, the labor supply and demand situation is changing. The continuous increase of human capital investment, the pension fund shortage problem are all provide a realistic basis to reform the retirement age system.In China, the discussion about delaying retirement began in the middle of 1990 s. Many scholars have studied and discussed this problem. Till February 2016, the Ministry of Human Resources and Social Security said the delay retirement program will be formally introduced in 2017, and there will be a transition period of 5 years after the introduction. Probably the revolution will not be implemented until 2022.This paper is divided into seven chapters. The first chapter is the introduction, including the background, significance, literature review, research methods, technical route, innovations and shortcomings. The second chapter is the related concepts and theoretical basis. In this chapter, retirement, retirement age, delaying retirement, the labor market, and the labor supply are defined, the life cycle theory, human capital theory, delay retirement affect labor supply theory are discussed. The third chapter is the analysis of retirement policy and the labor market situation. This chapter analyzes the problems of development in China’s current retirement policy, the current retirement policy, the development of delaying retirement policy, and the current status of China’s labor market supply. The fourth chapter is the impact of delaying retirement on labor supply analysis. First of all, the revolution can bring the positive influence in increasing the number of working age population and the extension of the recovery period of human capital; then, the paper analyzes the negative impact on the labor market supply. It proved that the delayed retirement will squeeze out the new employment population, especially the young people. The fifth chapter is the delayed retirement international experience. It contrasts, analysis the foreign delay retirement age trends, list the relevant policies of the United States, France, Britain and several typical developed countries implement content, briefly compared some OECD countries related policy implementation, and then puts forward the international experience for China’s inspiration and lessons. The sixth chapter puts the policy recommendations about delaying retirement, including the basic principles and advance measures. The seventh chapter is the conclusion and prospect of this paper.This paper uses the method of literature research, quantitative analysis and comparative analysis, and draw the conclusion: To delay the retirement age for China’s labor supply, not only has a positive impact or negative effects. Positive impact is mainly reflected in the revolution can bring the positive influence in increasing the number of working age population and the extension of the recovery period of human capital, negative impact is mainly reflected in the retirement age delay will reduce the employment rate of our country in a certain extent, especially on the employment of young people. Therefore, in order to minimize the negative impact, we need careful study and consideration when making this policy.