Author(s): LIU Lingling, REN Bin, School of Economics, Southwest University of Political Science and Law
Pages: 100-114
Year: 2015 Issue:  5
Journal: Population & Economics
Keyword:  indexed pension; pension adjustment mechanism; basic pension system; pensioners;
Abstract: Theoretically,whether the basic pension adjustment mechanism of China can guarantee the stability of pensioners’ basic pension is ambiguous,and the effect of the same mechanism is not simplex with different environment. Based on Chinese provincial panel data during 2002- 2012,this paper analysis the effect of basic pension adjustment mechanism on the stability of the basic pension using strumental variable estimation. We find that the adjustment mechanism have effectively guaranteed the stability of the absolute level of pensioners ’ basic pension. And,the effect of the mechanism for the name pension is higher than the effect for the actual pension under the condition of the absolute level. Also,we find that there is significantly difference of the basic pension adjustment mechanism among three major areas of China. We suggest that it is necessary for us to adjust the pensioners ’ basic pension compare with real wages,and establish appropriate adjustment mechanisms and effective evaluation systems for different areas.