The compliance challenge: Implications for social security in the People's Republic of China

Abstract

Discussion of social security compliance in developing societies has mainly focused on systemic administrative and operational issues. The article argues that analysis of compliance calls also for frameworks which draw lessons from nation-specific policy circumstances and comparisons of social protection regime types. Using such an approach, it also examines social security compliance in the context of China. Four considerations are found to be central to improved compliance: the sustainability of economic growth; trust in social institutions and regulations; the differing social values inherent in regime types; and institutional inertia accumulated in China's existing policy path.Analyses of social security compliance have shed light on the important problem of social insurance contribution rates, particularly in developing societies. This article argues that analysing compliance calls for frameworks which also consider lessons offered by nation-specific policy circumstances and comparisons of social protection regime types. Drawing on this dual approach, the present analysis examines social security compliance in the context of China. Relevant regime types are reviewed, specifically those emanating from the "worlds of welfare capitalism" approach (Esping-Andersen, 1990; and models put forward by the two intergovernmental organizations (IGOs) that are most authoritative in discussions of social security compliance: the World Bank and the International Labour Organization (ILO). In assessing the regime types and models, four factors are

Evasion of “mandatory” social health insurance for the formal sector: evidence from Lao PDR

“…Studies examining compliance with social security offer some insight into firms’ compliance with social security laws, but typically focus on how and why firms evade contributions [ 1 – 6 ]. One study from Shanghai examined the factors affecting compliance with social security.…”