Pension coverage for parents and educational investment in children: evidence from urban China

Ren Mu () and Yang Du

No 7457, Policy Research Working Paper Series from The World Bank

Abstract: When social security is established to provide pensions to parents, their reliance upon children for future financial support decreases, and their need to save for retirement also falls. In this study, the expansion of pension coverage from the state sector to the non-state sector in urban China is used as a quasi-experiment to analyze the intergenerational impact of social security on education investments in children. In a difference-in-differences framework, a significant increase in the total education expenditure is found to be attributable to pension expansion. The results are unlikely to be driven by other observable trends. They are robust to the inclusion of a large set of control variables and to different specifications, including one based on the instrumental variable method.

Keywords: Capital Flows; Urban Communities; National Urban Development Policies&Strategies; City to City Alliances; Non Bank Financial Institutions; Educational Sciences; Urban Economic Development; Regional Urban Development; Urban Economics; Social Funds and Pensions; Capital Markets and Capital Flows (search for similar items in EconPapers)
Date: 2015-10-26
New Economics Papers: this item is included in nep-age, nep-cna and nep-edu
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Citations: View citations in EconPapers (6)

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Related works:
Journal Article: Pension Coverage for Parents and Educational Investment in Children: Evidence from Urban China (2017)
Working Paper: Pension Coverage for Parents and Educational Investment in Children: Evidence from Urban China (2012)
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