Abstract
Does the New Rural Social Pension Insurance (NRSPI) scheme affect the likelihood of non-agricultural work among rural older adults in China? Based on the difference-in-differences method applied to data from the Chinese Household Income Project Survey of 2007 and 2013, this study employs a quasi-natural experiment method to investigate the causality relationship. Two main conclusions can be drawn. First, enrollment in the NRSPI scheme decreases the likelihood of participation in non-agricultural work. Second, the negative effect of the NRSPI scheme among the middle-aged group, low- and middle-education group, and rural older adults in the central regions is greater than that among the older age group, high-education group, and rural older adults in the eastern or western regions, respectively. The results suggest that the Chinese government should consider the negative effects of pensions on labor supply from a long-term perspective.
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