Do Kinship Networks Crowd Out the New Rural Pension Plan in China? Policy Implications for an Aging China

Tao, Dongjie; Wang, Junpeng; Hongying, Cai; Zhao, Kui

doi:10.1142/s021759081842002x

Cited by 3 publications

(5 citation statements)

References 26 publications

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“…, 2013), gender, health status, geographical location (Cheng et al. , 2017), family income level (Day and Day, 2021) and kinship networks (Tao et al. , 2021).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Prior studies recognize some factors affecting the participation behavior of the NRPP from the perspective of the family and social environment (Lei et al. , 2013; Tao et al. , 2021; Zhao and Qu, 2021).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Discussing the influencing factors of the NRPP participation rate, especially in underdeveloped areas, is meaningful. Existing studies uncover specific influencing factors of participation in the NRPP, including the number of children, age, education level (Lei et al, 2013), gender, health status, geographical location (Cheng et al, 2017), family income level (Day and Day, 2021) and kinship networks (Tao et al, 2021). Bajtelsmit et al (1999) use data from the 1989 Consumer Finance Survey and find that women exhibit greater relative risk aversion when allocating household wealth to DC pension assets.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Prior studies recognize some factors affecting the participation behavior of the NRPP from the perspective of the family and social environment (Lei et al, 2013;Tao et al, 2021;Zhao and Qu, 2021). Fornero and Monticone (2011) use Bank of Italy's survey data and find that most people lack an understanding of basic concepts such as interest rates and inflation.…”

Section: Literature Reviewmentioning

confidence: 99%

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Effect of household's financial literacy on pension decision making: evidence from China's new rural pension program

Ali²,

Yang³

et al. 2022

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PurposeChina's New Rural Pension Program (NRPP) has been implemented for a decade, but the factors that facilitate rural residents' participation have received little attention. This study aims to investigate whether financial literacy has an influence on rural residents' behavior of participation in the NRPP. In particular, this study further verifies if high financial literacy is important and whether financial education can enhance the impact of financial literacy on current, long-term and dynamic pension decisions of rural households.Design/methodology/approachThis study investigates the impact of financial literacy on rural residents' participation in China's NRPP using the China Household Financial Survey (CHFS) Data of 2015 and 2017. This study constructs an analytical framework for current, long-term and dynamic impacts and comprehensively analyzes the value of financial literacy in the decision making of the NRPP. This study uses the instrumental variable method to solve the possible endogeneity problem. In addition, the authors also demonstrate the positive role of high financial literacy in household pension decisions. Further analysis reveals gender and regional heterogeneity in the impact of financial literacy on pension decisions. The moderating effect model explores whether financial education has a significant moderating effect on financial literacy and pension decision making of the NRPP.FindingsFinancial literacy can improve the participation behavior of households in rural areas (dynamic effect) and promote their current and long-term participation in the NRPP, choosing a higher pension contribution level in the NRPP. However, financial literacy has no significant effect on the change in the contribution amount of the NRPP. Further research finds that high financial literacy has comparative advantages in household pension decision making in rural areas. There are gender and regional differences in the impact of financial literacy on pension decisions. In addition, effective financial literacy education enhances the current, long-term and dynamic impacts of residents' financial literacy on NRPP participation and pension contributions.Practical implicationsThis study comprehensively considers the impact of financial literacy on pension decision making behavior from three aspects: current, long-term and dynamic, making up for the dearth in the existing literature that only focuses on the impact of financial literacy on current financial behaviors and bridging the gap between the theoretical framework and experimental results. Our study proposes new policy implications: (1) Governments and financial institutions should pay attention to financial literacy and education levels in rural areas and carry out financial education and training programs to increase social welfare levels by increasing rural residents' participation and pension contribution. (2) The community can strengthen the policy advocacy of the NRPP and make people develop a stronger sense of trust toward it. The government can also subsidize individual accounts through financial support.Originality/valueThis study comprehensively considers the impact of financial literacy on pension decision-making behavior from three aspects: current, long-term and dynamic, making up for the dearth in the existing literature that only focuses on the impact of financial literacy on current financial behaviors and bridging the gap between the theoretical framework and experimental results. Our study proposes new policy implications: (1) Governments and financial institutions should pay attention to financial literacy and education levels in rural areas and carry out financial education and training programs to increase social welfare levels by increasing rural residents' participation and pension contribution. (2) The community can strengthen the policy advocacy of the NRPP and make people develop a stronger sense of trust toward it. The government can also subsidize individual accounts through financial support.

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“…, 2013), gender, health status, geographical location (Cheng et al. , 2017), family income level (Day and Day, 2021) and kinship networks (Tao et al. , 2021).…”

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

See 2 more Smart Citations

Effect of household's financial literacy on pension decision making: evidence from China's new rural pension program

Ali²,

Yang³

et al. 2022

View full text Add to dashboard Cite

show abstract

“…Fei Xiaotong, a famous Chinese sociologist, stated that, in rural areas, people's behaviors are mostly centered on themselves, and their relationship with others depends on how distant they are in themselves [25,26]. Relatives and family members are the closest people in farmers' social networks [27][28][29]. Farmers often communicate, learn, and imitate members of the kinship networks when deciding to revitalize and utilize idle houses [30].…”

Section: Introductionmentioning

confidence: 99%

Influence of the Kinship Networks on Farmers’ Willingness to Revitalize Idle Houses

Luo

et al. 2023

Sustainability

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China is vigorously promoting the strategy of rural revitalization, encouraging farmers to revitalize their idle houses and developing rural tourism. In rural China, kinship networks are essential in farmers’ willingness and decision–making tools. It is significant to explore the influence of kinship networks on farmers’ willingness to revitalize idle houses. This study constructs a research framework of “kinship networks–revitalization willingness–revitalization action”. It describes farmers’ kinship networks from five aspects: kinship networks structure, kinship networks relationship, kinship networks cognition, kinship networks members’ sense of belonging, and their social participation enthusiasm. Taking Bishan Village, a typical rural tourism–type ancient village, as an example, this study surveyed 197 farmers to demonstrate the influence of kinship networks on farmers willingness to revitalize idle houses. This paper uses a multiple regression model to empirically study the influence of kinship networks on farmers’ willingness to revitalize idle houses. The results show that: (1) In addition to the kinship networks structure having no significant positive impact on farmers’ willingness to revitalize idle houses, kinship networks relationship, kinship networks cognition, kinship networks members’ sense of belonging, and kinship networks members’ social participation enthusiasm all have positive effects on farmers’ willingness. (2) Considering the critical influence of kinship networks on farmers’ willingness to revitalize idle houses, the government should use the structure of kinship networks to formulate relevant policies to guide farmers to increase their willingness to revitalize their idle houses.

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Are children and pension substitutes? Evidence from the new rural pension scheme in China

Liu

2024

Applied Economics

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Do Kinship Networks Crowd Out the New Rural Pension Plan in China? Policy Implications for an Aging China

Cited by 3 publications

References 26 publications

Effect of household's financial literacy on pension decision making: evidence from China's new rural pension program

Effect of household's financial literacy on pension decision making: evidence from China's new rural pension program

Influence of the Kinship Networks on Farmers’ Willingness to Revitalize Idle Houses

Are children and pension substitutes? Evidence from the new rural pension scheme in China

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