Abstract
The basic endowment insurance system for urban workers is the pillar arrangement of the whole endowment insurance system in China, which makes a fundamental influence on the construction of social security system. After the 18th National Congress of the CPC, China ushered in the era of social pension system reconstruction. This paper reviewed the changing histories of endowment insurance system for urban workers, summarized the general characteristics of endowment insurance system for urban workers, and explored the factors of the endowment insurance system reform under a perspective of institutional change theory. It was found that the economic system reform, state-owned enterprise reform, and tax reform are the economic factors affecting the pension system transition, while the compartmentalization of administrative pattern and the conflicts of interest between government departments at all levels are the administrative factors to promote the reform of the endowment insurance system. There is new resistance of the comprehensive deepening reform within the new practice of institutional change, such as the dual-track system, endowment insurance model selection problem, and the overall planning for the whole country. The endowment insurance system in China is experiencing a critical period from the long-term reform to the mature stage.
Highlights
The social endowment insurance system (EIS) is an important part of the social security system in China, andHow to cite this paper: Jiang, N. (2016) Factor Analysis on the Endowment Insurance System Reform for Urban Workers in China: Based on the Perspective of Institutional Change Theory
In 1951 the first complete social insurance law and regulation was promulgated, which was the first time in China; in 1991, a decision on the reform of EIS for enterprise employees was published by the State Council, when the pension system was switched from national welfare system to personal responsibility system
According to the “Decision on Improving the Basic Endowment Insurance System for Enterprise Employees”, issued by the state council in December 2005, enterprise workers implement that the enterprise payment accounts for 20 percent of the total amount of wages, and the unification scale of individual accounts is adjusted to 8 percent basis, all formed by the individual payment, the unit payment is no longer assigned to individual accounts
Summary
The social endowment insurance system (EIS) is an important part of the social security system in China, and. (2016) Factor Analysis on the Endowment Insurance System Reform for Urban Workers in China: Based on the Perspective of Institutional Change Theory. Since the foundation of PRC, EIS for urban workers have gone through three stages: the preliminary set up under planned economic system, the partly adjustment after market-oriented reform for state owned enterprises, and fundamental change from pay-as-you-go (PATG) to partly-cumulative system. In 1951 the first complete social insurance law and regulation was promulgated, which was the first time in China; in 1991, a decision on the reform of EIS for enterprise employees was published by the State Council, when the pension system was switched from national welfare system to personal responsibility system. In that case, induced institutional change is not suitable as the current dominant system change method for China
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