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| Redistributive Effect of China’s Pension System Based on Wealth |
| Wang Yake1 Li Peng2 |
| 1.School of Banking and Finance， University of International Business and Economics， Beijing 100029；2.School of Insurance and Economics， University of International Business and Economics， Beijing 100029 |
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Abstract By using the 2016 China Family Panel Studies (CFPS) data and measuring all kinds of social security wealth， this paper analyses the effect of China’s old-age pension system on the wealth distribution. The results show that the pension system has a positive redistribution effect on all residents， which makes the Gini coefficient of national， urban， and rural residents’ wealth distribution decrease by 5.53%， 11.39%， and 8.97%， respectively. In comparison， the system has a greater redistribution effect on wealth distribution for people who have social security wealth， which reduces the Gini coefficient of the national， urban， and rural areas by 12.18%， 25.67%， and 16.09%. Across different wealth groups， China’s pension system redistributes wealth from the highest wealth group to the other low-wealth groups. The decomposition results show that there are large disparities of the social security wealth between urban and rural areas， which has weakened the redistribution effect of the pension system nationwide to some extent. In order to further improve the eect of the pension system， the government should make more efforts to expand coverage and narrow the pension gap across different groups.
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Received: 16 April 2020
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2020, Vol. 59 
