Pension Reform in China: The Need for a New Approach

17 Pages Posted: 25 Jun 2007

See all articles by Steven Dunaway

Steven Dunaway

International Monetary Fund (IMF) - Western Hemisphere Department

Vivek B. Arora

International Monetary Fund (IMF) - African Department

Date Written: May 2007

Abstract

The rapid aging of China's population over the next few decades makes it important for a new pension system with broad and adequate coverage to be put in place quickly. Pension reforms, first initiated in 1997, have become bogged down in difficulties over dealing with the "legacy costs" associated with the relatively more generous benefits provided under the old system. This paper argues that a way forward is to separate the legacy problem from the problem of setting up a new pension system, and it suggests concrete proposals for setting up such a new system which would cover both urban and rural workers.

Suggested Citation

Dunaway, Steven and Arora, Vivek, Pension Reform in China: The Need for a New Approach (May 2007). IMF Working Paper No. 07/109, Available at SSRN: https://ssrn.com/abstract=995615

Steven Dunaway (Contact Author)

International Monetary Fund (IMF) - Western Hemisphere Department ( email )

700 19th Street NW
Washington, DC 20431
United States

Vivek Arora

International Monetary Fund (IMF) - African Department ( email )

700 19th Street, NW
Washington, DC 20431
United States

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