Economic efficiency and social insurance reforms in China

Hui Li

Contemporary Economic Policy, 2000, vol. 18, issue 2, 194-204

Abstract: This study discusses efficiency issues related to social insurance provisions and their implications for the newly established three‐pillar pension system and three‐tier health insurance system in China. It shows that these new systems can be improved substantially through some restructuring to reduce efficiency losses. The discussion of efficiency consequences focuses on correction for market failure and alternative mechanisms for financing and providing social insurance benefits. Alternative methods for financing the transition are also discussed.

Date: 2000
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