 Pension Incentives and Retirement Planning in Rural China: Evidence for the New Rural Pension SchemeJuan Carlos Caro and Marcela Parada‐Contzen The Developing Economies, 2022, vol. 60, issue 1, 3-29 Abstract: This paper estimates the impact of social pension programs on retirement planning in rural China, focusing on the New Rural Pension Scheme (NRPS). Retirement planning is defined as an individual's intention to detach from the workforce at a given age instead of working for as long as physically possible. We also consider an individual's self‐reported health characteristics and subjective life expectancy. Overall, we find that the NRPS does not incentivize younger workers (those under 60 years of age) to plan their retirement; instead, they are more likely to remain in the workforce permanently to compensate for the additional costs. However, the NRPS provides a greater incentive for older workers (those 60 years of age and older) to plan their retirement than if there was no scheme. This result is particularly relevant for older unhealthy workers with a longer subjective life expectancy. We also find evidence that mental health status is key for the effectiveness of the policy. Date: 2022 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bla:deveco:v:60:y:2022:i:1:p:3-29 Ordering information: This journal article can be ordered from Access Statistics for this article The Developing Economies is currently edited by Katsuji Nakagane More articles in The Developing Economies from Institute of Developing Economies Contact information at EDIRC. |
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