scholarly journals Institutional Design and Incentives for Migrant Workers to Participate in Social Insurance in China: Evidence From a Policy Experiment in Chengdu City

2021 ◽  
Vol 9 ◽  
Author(s):  
Yihao Tian ◽  
Yuxiao Chen ◽  
Mei Zhou ◽  
Shaoyang Zhao

Rural-to-urban migration has increased rapidly in China since the early 1980s, with the number of migrants has reached 376 million by 2020. Despite this sharp trend and the significant contributions that migrants have made to urban development, the migrant workers have had very limited access to the social insurance that the majority of urban workers enjoy. Against the background of the social insurance system adjustment in Chengdu in 2011, this study uses a difference-in-differences (DID) model to empirically test the impacts of changes in the social insurance policy contribution rates on the social insurance participation rates of migrant workers, using the China Migrants Dynamic Survey (CMDS) data for 2009–2016. We find that the social insurance participation rate of migrant workers was significantly reduced after they were incorporated into the urban worker insurance system. There was no significant change in the wages of migrant workers, but the working hours were increased and their consumption level decreased. In other words, simply changing the social insurance model of migrant workers from “comprehensive social insurance” to “urban employee insurance” reduces the incentives for migrant workers to participate in insurance and harms the overall welfare of migrant workers. Our study indicates that the design of the social security policy is an important reason for the lower participation rate of migrants. It is necessary to solve the problem of insufficient incentives through the targeted social security policies; primarily, the formulation of a social security policy contribution rate suitable for the migrants, and the establishment of a comprehensive social security policy and the gradual integration of the social security system.

2021 ◽  
Author(s):  
Yihao Tian ◽  
Yuxiao Chen ◽  
Mei Zhou ◽  
Shaoyang Zhao

Abstract Background: Rural-to-urban migration has increased rapidly in China since the early 1980s, with the number of migrants reaching 376 million in 2020 (National Bureau of Statistics [NBS], 2020). Despite this sharp trend and the significant contributions that the migrants have made to urban development, migrant workers have had very limited access to the social insurance that the majority of urban workers have enjoyed. Methods: Based on the background of the social insurance system adjustment in Chengdu in 2011, we establish a difference-in-differences (DID) model to empirically test the impacts of change in social insurance policy contribution rates on migrant workers' social insurance participation rates, using the China Migrants Dynamic Survey (CMDS) data from 2009-2016.Results: The social insurance participation rate of migrant workers was significantly reduced after they are incorporated into the urban worker insurance system. Meanwhile, there is no significant change in the wages of migrant workers, but the working hours became longer and the consumption level turned lower. That is to say, simply changing the social insurance model of migrant workers from "comprehensive social insurance" to "urban employee insurance" reduces the incentives for migrant workers to participate in the insurance and harm the overall welfares of migrant workers.Conclusion: The design of the social security policy is an important reason for lower participation rate of migrants. Therefore, it is necessary to solve the problem of insufficient incentives through targeted social security policies. Specifically, the first is to formulate a social security policy contribution rate suitable for the migrants. The second is to establish a comprehensive social security policy and gradually integrate the social security system.


2011 ◽  
Vol 55-57 ◽  
pp. 1968-1973
Author(s):  
Lei Sun

Compared to the China's urbanization and increased speed of rural workers’ group size, the author analyzes the reasons of social security system right absence for migrant workers from the perspective of both macro-and micro-urban, where dual urban-rural social structure decided by dual economic base is the basic reason that causes the social security system right absence. Besides, the existing social insurance system against those migrant workers and the weak awareness of migrant workers all have no adverse effect on the social security system right absence .


2018 ◽  
Vol 113 ◽  
pp. 169-185
Author(s):  
Maciej Jakub Zieliński

ON CONTROVERSIES OVER INTERPRETATION OF THE PHRASE “PERFORMING WORK FOR THE BENEFIT OF ONE’S EMPLOYER” WITHIN THE MEANING OF ARTICLE 8 SECTION 2A OF THE SOCIAL INSURANCE SYSTEM ACT AND CONSTITUTIONALITY OF THAT PROVISIONThe article discusses controversies over interpretation of the phrase “performing work for the benefi t of one’s own employer” within the meaning of Article 8 section 2a of the Social Insurance System Act. The author criticizes interpretation of this phrase based solely on abstract theses formulated in individual judicial decisions, especially the ones of the Supreme Court. When detached from facts on which they were based, they can lead to unreasonable interpretation of the provision in question. The phrase “for the benefi t of one’s own employer”, should be construed through the prism of a relation that takes place in a typical employment relationship. In the three-subject configuration, when services are provided to the employer and the role of the third party is reduced to placement of workers which makes them similar, in terms of scope of their business, to temporary work agencies, this results in recognition that under service contracts concluded with those workers work is provided for their employer. It is quite diff erent for the situation where the third party is obliged to provide employer with a particular product, which is produced in the course of their business. Then, the key factor should rely on establishing whether the party in question bears organizational, technical and production risks related to manufactured products. Furthermore, considerations contained herein lead to the conclusion that the normative content of Article 8 section 2a of the Social Security Act settled in the Supreme Court’s case-law is incompatible with the principle of citizens’ trust in the state and its law. Article 8 section 2a of the Social Security Act itself, at least when it comes to performing work for one’s own employer within a civil-law contract concluded with a third party, is incompatible with Articles 217 and 64 section 3 of the Constitution of the Republic of Poland. Thus, opinions on how the law should stand were made herein.


2013 ◽  
Vol 16 (1) ◽  
pp. 39-53
Author(s):  
Arlinda Shkreli Axhemi ◽  
Gert Dragoshi

The aim of this paper is to analyze the social protection system in Albania during the last two decades. It highlights some of the problems and issues which are closely associated with elements of social security, as a phenomenon that focuses on finding solutions or solving the problems in social security systems in Albania. Of great importance are the changes in the social security legislation in recent years, which led to a new structure of the social insurance market in Albanian society. Also discussed are the types of benefits offered by our social insurance system. Our country occupies a special place in relation to the problems it has encountered with social protection and the social security law.


2021 ◽  
Vol 562 (1) ◽  
pp. 12-18
Author(s):  
Robert Marczak

The Polish social insurance system is a part of the social security scheme. The Constitution of the Republic of Poland imposes on the state an obligation to create such system and to fulfill social security guarantees for every citizen. Participation in the social insurance system, and thus insurance coverage in the field of the consequences of social risks, is strictly dependent on the fact of performing a gainful activity on the principles set out in the social insurance act (among others: work under a contract of employment or under a civil law contract and conducting business). The legality of employment and the employer fairness on the one hand, and the effectiveness of control authorities of state institutions on the other hand, are two driving engines of the insurance guarantee. Responsibility for providing such insurance protection lies between the institutional activities of the state and the individual foresight of the citizen. It is on his/her side that knowledge about social insurance plays a very important role as an element of risk awareness. The act on the social insurance system imposes on the Polish executive institution in the area of social insurance (the Polish social insurance institution, ZUS) the obligation to popularize this knowledge. The purpose of the article is the attempt to indicate the scope of a minimum knowledge of social insurance, which will allow a citizen to make a conscious participation in the system, i.e. effective protection against the results of the possible risks.


2018 ◽  
Vol 113 ◽  
pp. 105-120
Author(s):  
Ariel Przybyłowicz

CONTRACTORS JOINTLY IMPLEMENTING A PUBLIC CONTRACT AND ARTICLE 8 SEC. 2A OF THE ACT OF 13TH OF OCTOBER 1998 ON THE SOCIAL INSURANCE SYSTEMArticle 8 para. 2a of the Act on the social insurance system includes the so-called extended employee defi nition. For social security purposes, it is also a person who has entered into a civil law contract with his own employer or with another entity, but performs this contract for his own employer. This provision creates signifi cant practical problems, including the problems on the basis of public procurements. One of the problematic questions is employing of the same people by several contractors, who perform the public procurement together as a consortium. The question then arises whether the work performed on the basis of a civil law contract concluded with one of such contractors, next to the employment contract concluded with another contractor, constitutes the title of social insurance according to the mentioned provision. In the article the Author presents potential confi gurations of such employment and tries to answer the question, in which of those confi gurations is the Article 8 para. 2a of the Act on the social insurance system applicable. According to Author, its automatic application in all of those situations is unacceptable.


2019 ◽  
Vol 1 (1) ◽  
pp. 835-842
Author(s):  
Roman Garbiec

AbstractSocial risks are an unusual type of risks occurring in insurance. Their specific feature is the implementation of risk in the sphere of social life of a person with special regard to the work environment. Social risks are an element of research in economics and law and in social policy. The author of the paper shows that the structure of the Polish social insurance system is not optimal and requires radical reform. This paper contains, among others, characteristics of the scope of protection of social risks identified in Poland by Social Security Administration and the basis for financing benefits from this system. The summary of the paper presents opinions on improving the financial efficiency of this system.


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