Impact of the Floor of Contribution Base on the Informal Workers Participate in the Earnings-related Pension Scheme
The implementation of the Comprehensive Programme for Reducing Social Insurance Contribution Rates in 2019 reduced the floor of the contribution base. Verify whether it can promote informal workers to participate in the Earnings-Related Pension Scheme (ERPS),which is conducive to optimizing the social security system and safeguarding the rights of informal workers. Based on the date of the China Family Panel Survey ( CFPS) from 2010 to 2020,the paper examines the impact of reducing floor of contribution base on the informal workers participate in the ERPS by using the difference-in-difference method. The result shows that lowering floor of contribution base significantly increases the rate of low-income informal workers partici-pate in the ERPS by 6.5 percent,which is demonstrated to be robust through a series of tests. The main mechanism is that the reduction of the floor of contribution base alleviates the contribution burden of low-in-come informal workers,thus promoting them participate in the ERPS. The promotion effect is more significant among informal workers who are younger and work fewer hours per week. In order to promote the participation of informal workers in ERPS,this paper suggests optimizing the approval of the contribution base,designing a more informal contribution base floor,and adopting differentiated incentives for different age groups.
Informal WorkersContribution BaseChoice of Pension SchemesEarnings-related Pension Scheme
万方数据
维普
