The Impact Of New Rural Pension Insurance On Rutal Labor Migration

China is a large agricultural country and has a large number of population.Rural people account for about 45%of total population.Moreover,the proportion of the elderly people over 65 in the countryside is close to 10%,which is higher than that in urban.So the aging population problem in rural areas is more serious than in urban.However,the traditional family support function in rural areas is weakened because the outward flow of the population.The new rural pension insurance started in 2009 provides basic old-age security for rural population.It compensates for the lack of traditional rural family support and land protection.Also,it makes the public services more equalized in urban and rural areas.So,this policy plays an important role in alleviating current plight of the elderly in rural areas.Currently,the subsidy of the new rural pension insurance provided by central government is 70 yuan per person per month,and the covered rate has been over 95%.This paper analyzes the specific policy of the new rural pension insurance system and the development history of old and new rural insurance.The new rural pension insurance policy is developed based upon old insurance policy.Also,different payment standards of the insurance incentives rural residents to seek for better pension protection.This promotes rural laborers to search for jobs with higher income payment in cities.In addition,the paper analyzes the subsidy expenditure of central government after the implementation of the new rural pension insurance.Although the subsidy provided by central government increases largely,the self-expense part of the new rural pension insurance is still the majority part.Moreover,rural residents spend more and more their own money on the insurance in recent years.Besides,in this paper,I analyze the impacts of new rural pension insurance to rural labor migration with Logit models and China rural fixed observation point data from 2007 to 2012.The results show that people who participate in the new rural insurance are more willing to move outside than people who do not.Specifically,with other conditions remain unchanged the possibility increased 0.54%when rural labor participate in the new rural insurance.In conclusion,the young men who have participated in the new rural pension insurance and received non-agricultural training courses are more likely to move to cities.Therefore,I believe that the promotion of the new rural pension insurance may accelerate the outflow of rural labor and increase competition of urban employment market.