A Study On China's Social Insurance Contribution Evasion And The Severity Of Laws And Regulations

Social insurance is a very important part of social security system, which plays a crucial role in stabilizing people's livelihood and promoting economy development. There are lots of problems coming out during the development of social insurance, and one severe problem is social insurance contribution evasion which happens despite repeated prohibition.If this evasion becomes a common phenomenon, it will highly impede the progress of social insurance or even the whole social security system. As we all know, the formulation and implementation of laws help rectify compulsorily disorder conduct in our society, so it is necessary to study the reasons of evasion and finally to proposal some suggestions. First of all, we can know clearly about the relevant legislation in our country; secondly, different provinces in China have issued different policies and regulations, and because of different economy levels, insured conditions and labor markets, the contribution evasion varies from place to place. Through giving each province a score concerning the severity of their legislation, we can understand their policies in a more specific way. Thirdly, after examining the relationship between the severity of law and the contribution evasion, we can make sure how they relate to each other, and the comparison of laws and regulations between China and other four countries can help us seize the advantages and disadvantages in our country's legislation. Fourthly, proposing some useful suggestions can truly reduce and suppress the evasion. In a word, it is very meaningful to do some research, from legislative angle, in the area of social insurance contribution evasion.Based on the sever situation of contribution evasion, this paper examines its reasons and solutions from legislative perspective. At first, we collect all relevant laws and regulations in China and all provinces in China, quantify every province by scoring each concerning its legislation severity, and then test it with the contribution evasion rate to prove that they relate to each other. We select four sample countries to compare with China and find that laws and regulations in China are less severe and clear. So we propose some suggestions to modify our laws and regulations, which fill up the research blank in this area.This paper has seven parts and each part can be summarized as follows:Part ?.Introduce the background of social insurance contribution evasion and its severe consequences, also we have showed some theoretical studies in China and abroad, then propose the direction and goal of this paper as well as ideas and methods of researching.Part ?.Introduce theoretical research about the relationship between social insurance contribution evasion and the severity of laws and regulations. This paper use three theories which are game theory, expectation theory and theory of tax compliance to analysis the relationship mentioned before.Part ?.lntroduce the penalties in our countries'laws and regulations which focus on the contribution evasion and analysis their changes in these years. Then we list the "special" policies issued by 31 provinces in China from the period 2002 to 2011 and score each province concerning the severity of its relevant regulations, in this way we quantify the severity of laws and regulations.Part ?.Empirically analyze the relationship between social insurance contribution evasion and the severity of laws and regulations. Based on the theoretical study above, we construct a regression model to examine the relationship, using endowment insurance as a representative of social insurance, its full collection rate as the seriousness of contribution evasion and the scores we have gotten earlier as the severity of laws and regulations. In this way we have our main conclusion that the severer laws and regulations are, the less the contribution evasion is.Part V.Introduce relevant laws and regulations in four sample countries which are the United States, the United Kingdom, India and Singapore.Part VI.Compare the legislation between China and other four countries, analyze the disadvantages of China's legislation.Part ?. Conclusion and suggestions. According the analysis above, we propose some suggestion and methods to modify the social insurance legislation in China.