Abstract
The basic endowment insurance system for enterprise employees has already covered migrant workers in China. However, a number of migrant workers have withdrawn from insurance system in economically developed regions in recent years. And the number is on the rise. The root cause for it lies in the institutional barrier of trans-regional migration. Besides, it also closely linked to the internal contradictoriness in the endowment insurance system. This paper aims at discussing how to break the trans-regional migration obstacles of endowment insurance system and promote the current pooling account from provincial level to national level. Based on the analysis on China's basic endowment insurance system, four main problems has been found. They are county-based system and low level of pension pooling, trade-off in local governments caused by fiscal backstop, restrictions from the existing fiscal system, and implement of policies relies heavily on execution of basic-level governments. In order to solve these problems of existing endowment insurance system, establishing an integrated endowment insurance system which covers the whole Chinese citizens is further proposed. In addition, confronted with the current fact that we have a big gap of social security treatment between urban and rural areas, among different regions and among various groups, the feasible solution is to complete transformation from differential universal-type social welfare system to fair universal-type social welfare system. To promote the current pooling account from provincial level to national level, it needs to be carried forward systematically and stage by stage.
Highlights
Social insurance is one of the most important and fundamental parts in social security system [1,2,3,4]
According to Statistical Communiqué of the People’s Republic of China on the 2014 Labor and Social Security Development published jointly by Ministry of Human Resources and Social Security of the People’s Republic of China and the National Statistical Offices of China, the total revenue of social security fund amounted to 3982.8 billion yuan in 2014, more than two thirds of which comes from endowment insurance fund whose total revenue is 2762 billion yuan [11]
The ultimate goal of China’s social security is to establish an incorporate and universal-type endowment insurance system which is available to all Chinese citizens
Summary
Social insurance is one of the most important and fundamental parts in social security system [1,2,3,4]. Many researchers have paid more attention to the operation of the endowment insurance systems all over the world [7,8,9,10]. According to Statistical Communiqué of the People’s Republic of China on the 2014 Labor and Social Security Development published jointly by Ministry of Human Resources and Social Security of the People’s Republic of China and the National Statistical Offices of China, the total revenue of social security fund amounted to 3982.8 billion yuan in 2014, more than two thirds of which comes from endowment insurance fund whose total revenue is 2762 billion yuan [11]. The endowment insurance carries a big weight in the whole social security system of China
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