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Intergenerational Transfers and China’s Social Security Reform

Ayse Imrohoroglu () and Kai Zhao ()

No 2017-18, Working papers from University of Connecticut, Department of Economics

Abstract: Most of the studies examining the implications of social security reforms in China use overlapping generations models and abstract from the role of family support. How-ever, in China, family support plays a prominent role in the well-being of the elderly and often substitutes for the lack of government-provided old-age support systems. In this paper, we investigate the impact of social security reform in China in a model with two-sided altruism as well as a pure life-cycle model. We show that the quantitative implications of social security reform are very different across the two models.

Pages: 55 pages
Date: 2017-08
New Economics Papers: this item is included in nep-age, nep-cna, nep-dge and nep-tra
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