Collection Efficiency of Public Pension Funds: Based on Dynamic Panel Threshold Model

Abstract

This study examines the impact of the regional old-age dependency ratio on the collection efficiency of public pension funds using statistical data on contributions of public pension schemes for urban employees in 31 Chinese provinces and municipalities between 2010 and 2015. An inverted U-curve relationship between the regional old-age dependency ratio and the collection rate of public pension funds was observed with a single threshold value of .5439, thus, suggesting the need for a change in the soft constraints on collection responsibility and an optimization of the institutional structure underlying public pension schemes.