Does New Rural Pension Scheme decrease elderly labor supply? Evidence from CHARLS

Manxiu Ning, Jinquan Gong, Xuhui Zheng and Jun Zhuang ()

China Economic Review, 2016, vol. 41, issue C, 315-330

Abstract: This paper examines the effect of the New Rural Pension Scheme (NRPS) on the labor supply behavior of the elderly in rural China. Using pooled data from two waves of the China Health and Retirement Longitudinal Survey (CHARLS) and an analytical framework of combination of regression discontinuity design and difference in difference method (RD-DiD), we find no evidence that pension receipt from the NRPS program does significantly induce the elderly to withdraw from the labor market. The heterogeneous effects by health status indicate that pension recipient slightly decreases the probability of labor force participation for those individuals with chronic diseases; however, the effect is not statistically significant. The empirical findings suggest that the introduction of the NRPS program does not improve the welfare effect of the originally targeted elder individuals with illness.

Keywords: Labor supply; New Rural Pension Scheme; Regression discontinuity design; Difference in difference (search for similar items in EconPapers)
JEL-codes: I38 J14 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (32)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:chieco:v:41:y:2016:i:c:p:315-330

DOI: 10.1016/j.chieco.2016.04.006

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