Skip to main content

Advertisement

SpringerLink
Log in

The evolution of China’s social policies

  • Published:
Economic Change and Restructuring Aims and scope Submit manuscript

Abstract

The movement of the Chinese economy towards a market-based system brought about a profound change in the nature of the social protection system in China and in the relative incomes of different groups in society. The collectively-provided health care systems failed to adapt to the new economic system, pension provision in urban ceased to be provided for all workers and rewards in the labour market became linked to the market-value of a skills. The result was a significant increase in inequality driven, especially by differences between urban and rural incomes. Since the middle of the last decade, though, inequality has stopped rising and shows signs of declining as increased labour mobility has tended to raise incomes in rural areas. At the same time, a range of new social policies have been introduced. While the level of spending on these policies remains low, they offer a framework for future expansion. There are still some areas where only limited progress has been made, notably concerning the access of migrants to public services in urban areas.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1
Fig. 2
Fig. 3
Fig. 4
Fig. 5
Fig. 6
Fig. 7
Fig. 8
Fig. 9
Fig. 10
Fig. 11
Fig. 12
Fig. 13
Fig. 14

Similar content being viewed by others

References

  • ADB (2002) Old-age pensions for the rural areas: from land reform to globalization. Asia Development Bank, Manila

  • Anand S, Fan VY, Zhang J, Zhang L, Ke Y, Dong, Z, Chen L (2008) China’s human resources for health: quantity, quality and distribution. Lancet 372(9651):1774–1781

    Google Scholar 

  • Benjamin D, Brandt L, Fan J (2003) Ceaseless toil? Health and labour supply of the elderly in rural China. William Davidson Institute Working Papers, No. 579

  • Blundell R, Pistaferri L, Preston I (2008) Consumption inequality and partial insurance. Am Econ Rev 98(5):1887–1921

    Google Scholar 

  • Cai F, Du Y, Wang M (2008) Labour market developments in China: situations, legal framework and implications. In: Consultancy report to the OECD. Institute of Population and Labour Economics, Chinese Academy of Social Sciences

  • China Academy of Sciences (2005) Annual strategic report of China’s sustainable development by the Chinese Academy of Science (CAS), Beijing

  • Chotikapanich D, Prasada Rao DS, Tang K (2007) Estimating income inequality in China using grouped data and the generalized beta distribution. Rev Income Wealth 53(1):127–147

    Google Scholar 

  • Davies G, Nielsen I, Smyth R (2008) Correct ideas and social security reform in China: the case of Shanghai’s township insurance. In: Nielsen I, Smyth R (eds) Migration and social protection in China. World Scientific, Singapore

    Google Scholar 

  • Development Research Center (2007), Regulating medical services in China. Department of Social Development, Development Research Center of the State Council of People’s Republic of China, Milbank Memorial Fund Washington, DC

  • Eggleston K, L Li, M Qingyue, M Lindelow, A Wagstaff (2008) Health service delivery in China: a literature review. Health Econ 17(2):1774–1781

    Google Scholar 

  • Eggleston K, Shen Y, Lu M, Li C, Wang J, Yang Z, Zhang J (2009) Soft budget constraints in China: evidence from the Guangdong hospital industry. Int J Health Care Financ Econ 9(2):233–242

    Google Scholar 

  • Gao S, Meng X (2009) Health and rural cooperative medical insurance in China: an empirical analysis. In: Paper presented to the conference on Asian social protection in comparative perspective. University of Maryland and the Lee Kwan Yu School of Public Policy, Singapore, 7–9 January

  • Hassett KA, Mathur A (2012) A new measure of consumption inequality. AEI Economic Studies, Washington, DC

    Google Scholar 

  • He P (2012) Raising the retirement age in China. In: Paper delivered to a symposium on ageing, Beijing. http://www.china.org.cn/china/2012-07/02/content_25785258.htm

  • Health Statistics Yearbook (2008) Minsitry of Health, Beijing

  • Helpage International (2006) Social pensions in low and middle income countries. London

  • Herd R (2010) A pause in the growth of inequality in China? OECD Economics Department Working Papers

  • Herd R, Koen V, Reutersward A (2010) China’s labour market in transition: job creation, migration and regulation. OECD Economics Department Working Papers

  • Jin F, He L, Sato H (2009) Public pension and household saving: evidence from China. BOFIT Discussion Papers, 2-2009. Bank of Finland, Institute for Economies in Transition, Helsinki

  • Lam K, Johnston JM (2012) Health insurance and healthcare utilisation for Shenzhen residents: a tale of registrants and migrants? BMC Public Health 12:868

    Google Scholar 

  • Lei X, Zhang C, Zhao Y (2011) Incentive problems in China’s new rural pension program. Presentation to a conference organised by the China Institute for Employment Research and IZA on current labour market issues in China, Beijing

  • Li S, Sato H, Sicular T (eds) (2013) Rising inequality in China: challenge to a harmonious society. Cambridge University Press, Cambridge

    Google Scholar 

  • Liang X, Zheng D, Yang L (2009) The dilemma of drug price regulation and countermeasures in China. In: Paper presented to the conference on Asian social protection in a comparative perspective. University of Maryland and Lee Kwan Yu School of Public Policy, Singapore, 7–9 January

  • Lindelow M, Wagstaff A (2005) Health shocks in China: are the poor and uninsured less protected? World Bank Research Papers, WPS 3740

  • Liu J, Li S (2011) Changes in consumption inequality in China. University of West Ontario, Working Paper 2011-11

  • Liu X, Mills A (2003) The influence of bonus payments to doctors on hospital revenue: results of a quasi-experimental study. Appl Health Econ Health Policy 2(2):91–98

    Google Scholar 

  • Liu Y, Rao K, Hsiao W (2003) Medical expenditure and rural impoverishment in China. J Health Popul Nutr 21(3):216–222

    Google Scholar 

  • Maddison A (2006) The world economy: historical statistics. OECD, Paris

    Book  Google Scholar 

  • Meng X, Shen K, Xue S (2012) Economic reform, education expansion, and earnings inequality for urban males in China. J Comp Econ 1988–2009. doi:10.1016/j.jce.2012.04.004

  • Meyer BD, Sullivan JX (2009) Consumption and income inequality in the US: 1960–2008. University of Notre Dame Working Paper, Notre Dame

  • Ministry of Health (2005) Report on China’s healthcare system and reform. Beijing

  • MOHRSS (2009a) Media conference on the two new provisional pension rules. http://www.mohrss.gov.cn/mohrss/Desktop.aspx?path=mohrss/mohrss/InfoView&gid=3448b78c-3669-4fdd-be69-35db8d11b4dd&tid=Cms_Info (in Chinese)

  • MOHRSS (2009b) Rules on migrant workers’ participation in basic pension insurance. http://www.nbjdrs.gov.cn/news.aspx?nid=193

  • National Population and Family Planning Commission (2009) Statement of Minister Li Bin at the 42nd Session of the UN Commission on Population and Development, March 31

  • O’Neill BC, Scherbov S (2006) Interpreting UN urbanization projections using a multi-state model. Interim Report IR-06-012, IIASA, Vienna

  • Pang L, de Brauw A, Rozelle S (2004) Working until you drop: the elderly of rural China. China J 52:73–96

    Google Scholar 

  • Peng H, Ngok K, Kaufman J (2012) Dongguan’s unified social health insurance system: genesis, experiences and implications. In: Presentation to the second global symposium on health systems research. World Health Organization, Beijing

  • Saunders P (2007) Comparing poverty among older people in urban china internationally. China Q 190(June):451–465

    Google Scholar 

  • Sin Y (2005) Pension liabilities and reform options for old age insurance. Working Paper No. 2005-1. World Bank

  • Sun X, Jackson S, Carmichael G, Sleigh A (2009) Catastrophic medical payment and financial protection in rural China: evidence from the New Cooperative Medical Scheme in Shandong Province. Health Econ 18(1):103–119

    Google Scholar 

  • UNDP (2008) Access for all: basic public services for 1.3 billion people. China Human Development Report, 2007/8

  • UNICEF (2006) Joint review of maternal and child care survival strategy in China. UNICEF, Beijing

    Google Scholar 

  • Vail J (2009) Managing infectious diseases among China’s migrant populations. In: Freeman C, Lu X (eds) China’s capacity to manage infectious diseases: global implications center for strategic and international studies. Washington, DC, p 17–25

  • Wagstaff A, Lindelow M (2008) Can insurance increase financial risk? The curious case of health insurance in China. J Health Econ 27(4):990–1005

    Google Scholar 

  • Wagstaff A, Yip W, Lindelow M, Hsiao W (2009) China’s health system and its reform: a review. Health Econ 18(S2):S7–S23

    Google Scholar 

  • Wang X (2009) Projecting pension deficits in China. In: Presentation to a joint OECD-SIC seminar, Beijing

  • Watson A (2012) Building social welfare in China: providing retirement incomes in a transforming economy. In: Mckay H, Song L (eds) Rebalancing and sustaining growth in China. Australian National University Press

  • WHO and DRC (2005) China: health, poverty and economic development. Available at http://www.who.int/macrohealth/action/CMH_China.pdf

  • World Health Organisation (2009) World Health Statistics 2009. Geneva

  • World Bank (2012) Poverty projections for China: 2008 to 2015. http://tomorrowseconomy.wordpress.com/2012/05/17/the-world-bank-responds-on-chinese-poverty-forecast/

  • Xue J, Gao W (2012) How large is the urban-rural income gap in China? In: Paper presented at world economy conference organised by RCIE at the University of Washington, KIET, APEA, and UIBE, Seattle

  • Yang Y, Williamson J, Shen C (2010) Social security for China’s rural aged: a proposal based on a universal non-contributory pension. Int J Soc Welf 19(2):236–245

    Google Scholar 

  • Zeng Y, Wang Z, Leiwen J, Gu D (2008) Future trend of family, households and elderly living arrangement in China. Genus LXIV(1–2):9–36

Download references

Author information

Authors and Affiliations

  1. Economics Department, Organisation for Economic Cooperation and Development (OECD), 2 rue Andre Pascale, 75775, Paris Cedex 16, France

    Richard Herd

  2. University of Shenzhen, Shenzhen, P.R. China

    Richard Herd

Authors
  1. Richard Herd
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Richard Herd.

Additional information

This paper presents the views of the author and should not be taken as representing the views of organisations to which the author is affiliated.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Herd, R. The evolution of China’s social policies. Econ Change Restruct 46, 109–141 (2013). https://doi.org/10.1007/s10644-012-9138-z

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10644-012-9138-z

Keywords

Search

Navigation