Delegated agency issues within national coordination of pension insurance:Is vertical management by administrative agencies the decisive solution?
In 2022,China officially achieved national coordination of the employees'pension insurance system.However,due to the current'central-local joint management'social security model,national coordination can easily trigger principal-agent problem between central and local governments,which hampers the smooth realization of the national coordination objectives.Against this backdrop,can the establishment of a national vertical management system by the implementing agencies be an effective measure to address these agency problems?This article employs a provincial-level reform as a proxy for national reform,constructing econometric and actuarial models,and makes the following findings:First,the provincial coordination of employees'pension insurance causes the effective rate to decrease by 2.40%,and if it is complemented by the vertical management of operators at the provincial level,the effective rate will increase by 2.90%;second,the results of the test of heterogeneity show that the vertical management of operators is more effective in the regions with high degree of aging and a low proportion of state-owned economy;third,in terms of the process of the pension insurance operation,the increase in the level of coordination will lead to the relaxation of supervision of the local government in the registration process in order to create an advantage in investment promotion.Third,from the perspective of the process of pension insurance administration,the increase in the level of coordination will lead local governments to relax the supervision in the registration process in order to create an advantage in attracting investments,and such rent-seeking behavior will be effectively improved after the realization of vertical management;fourth,the cumulative government expenditures on pension insurance will reach 718.02 trillion yuan during the period of 2023-2050 without the realization of the national coordination,and the scale of the expenditures will increase by 19.06%after the realization of the national coordination.Decrease by 23.08%.In conclusion,in order to ensure the effective release of the effects of national coordinated policies,this article believes that a gradual reform path should be adopted,first establishing a vertical management system of municipal governments to county and district governments,then actualizing the vertical management of employees'pension insurance agencies at the provincial level,and finally constructing a vertical management system from the central to the local level,with a view to promoting the high-quality development of the employees'pension insurance system.
national coordinationvertical managementeffective ratefinancial pension insurance expenditure
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