Institutional constraints for the extension of social insurance coverage to informal economy workers in China

Zhuoyi Vincent WEN; Jiwei QIAN

Institutional constraints for the extension of social insurance coverage to informal economy workers in China

Zhuoyi Vincent WEN
, Jiwei QIAN

Asia-Pacific Institute of Ageing Studies

Research output: Journal Publications › Policy or Profession paper › Profession

Abstract

This research brief considers institutional and administrative barriers for expanding social insurance coverage to workers in the informal economy in China.

While urban employee social insurance has widened significantly in recent years, workers in the informal economy lack pension and medical coverage to the extent and at the levels of adequacy enjoyed by urban formal employees.

China’s fragmented and decentralized social protection delivery and fiscal systems limit the country’s capacity to implement national policy guidelines promoting social insurance coverage.

The decentralisation of social insurance administration creates opportunities for service innovation, responsiveness, and adaptation to local social and economic circumstances.

However, the mismatch between national policy objectives and local capacities and incentives for their implementation crowd out efforts to secure the adequate protection of workers in the informal economy.

The brief presents some of the causes of these misalignments and illustrates some ways through which China is attempting to overcome regulatory and administrative barriers to policy implementation.

Original language	English
Number of pages	16
Journal	ILO Research Brief
Publication status	Published - 20 Nov 2020

Bibliographical note

While as authors we take full responsibility for the content of this research brief, we wish to acknowledge valuable feedback from Claire Courteille-Mulder, Director of the ILO Beijing, Shahrashoub Razavi, Director at the Social Protection Department, ILO Geneva, Florence Bonnet, Labour market and informal economy specialist at Work quality Department, ILO Geneva, Nuno Cunha, Senior Social Protection Technical Specialist, ILO Bangkok and Luis Frota, Chief Technical Advisor on Social Protection, ILO Beijing. We also thank the China Social Insurance Administration for their pertinent opinions.

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 1 No Poverty
SDG 8 Decent Work and Economic Growth

Keywords

Informal employment
social protection
social security
informal economy
insurance

Access to Document

https://www.ilo.org/wcmsp5/groups/public/---asia/---ro-bangkok/---ilo-beijing/documents/briefingnote/wcms_761658.pdf

Extension of social insurance coverage to informal economy workers in China : An administrative and institutional perspective
QIAN, J. & WEN, Z., Mar 2021, In: International Social Security Review. 74, 1, p. 79-102 24 p.
Research output: Journal Publications › Journal Article (refereed) › peer-review
14 Link opens in a new tab Citations (Scopus)
Social protection for the informal sector in urban China : institutional constraints and self-selection behaviour
JIANG, J., QIAN, J. & WEN, Z., Apr 2018, In: Journal of Social Policy. 47, 2, p. 335-357 23 p.
Research output: Journal Publications › Journal Article (refereed) › peer-review

Open Access
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42 Link opens in a new tab Citations (Scopus)

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Podcast : Obstacles and opportunities to expand social security for workers in the informal economy in China
Qian, J. & WEN, Z.
10/11/20
1 item of Media coverage
Press/Media: Research / Knowledge Transfer

Cite this

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abstract = "This research brief considers institutional and administrative barriers for expanding social insurance coverage to workers in the informal economy in China. While urban employee social insurance has widened significantly in recent years, workers in the informal economy lack pension and medical coverage to the extent and at the levels of adequacy enjoyed by urban formal employees. China{\textquoteright}s fragmented and decentralized social protection delivery and fiscal systems limit the country{\textquoteright}s capacity to implement national policy guidelines promoting social insurance coverage. The decentralisation of social insurance administration creates opportunities for service innovation, responsiveness, and adaptation to local social and economic circumstances. However, the mismatch between national policy objectives and local capacities and incentives for their implementation crowd out efforts to secure the adequate protection of workers in the informal economy. The brief presents some of the causes of these misalignments and illustrates some ways through which China is attempting to overcome regulatory and administrative barriers to policy implementation.",

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N1 - While as authors we take full responsibility for the content of this research brief, we wish to acknowledge valuable feedback from Claire Courteille-Mulder, Director of the ILO Beijing, Shahrashoub Razavi, Director at the Social Protection Department, ILO Geneva, Florence Bonnet, Labour market and informal economy specialist at Work quality Department, ILO Geneva, Nuno Cunha, Senior Social Protection Technical Specialist, ILO Bangkok and Luis Frota, Chief Technical Advisor on Social Protection, ILO Beijing. We also thank the China Social Insurance Administration for their pertinent opinions.

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N2 - This research brief considers institutional and administrative barriers for expanding social insurance coverage to workers in the informal economy in China. While urban employee social insurance has widened significantly in recent years, workers in the informal economy lack pension and medical coverage to the extent and at the levels of adequacy enjoyed by urban formal employees. China’s fragmented and decentralized social protection delivery and fiscal systems limit the country’s capacity to implement national policy guidelines promoting social insurance coverage. The decentralisation of social insurance administration creates opportunities for service innovation, responsiveness, and adaptation to local social and economic circumstances. However, the mismatch between national policy objectives and local capacities and incentives for their implementation crowd out efforts to secure the adequate protection of workers in the informal economy. The brief presents some of the causes of these misalignments and illustrates some ways through which China is attempting to overcome regulatory and administrative barriers to policy implementation.

AB - This research brief considers institutional and administrative barriers for expanding social insurance coverage to workers in the informal economy in China. While urban employee social insurance has widened significantly in recent years, workers in the informal economy lack pension and medical coverage to the extent and at the levels of adequacy enjoyed by urban formal employees. China’s fragmented and decentralized social protection delivery and fiscal systems limit the country’s capacity to implement national policy guidelines promoting social insurance coverage. The decentralisation of social insurance administration creates opportunities for service innovation, responsiveness, and adaptation to local social and economic circumstances. However, the mismatch between national policy objectives and local capacities and incentives for their implementation crowd out efforts to secure the adequate protection of workers in the informal economy. The brief presents some of the causes of these misalignments and illustrates some ways through which China is attempting to overcome regulatory and administrative barriers to policy implementation.

KW - Informal employment

KW - social protection

KW - social security

KW - informal economy

KW - insurance

M3 - Policy or Profession paper

JO - ILO Research Brief

JF - ILO Research Brief

ER -

Institutional constraints for the extension of social insurance coverage to informal economy workers in China

Abstract

Bibliographical note

UN SDGs

Keywords

Access to Document

Fingerprint

Research output

Extension of social insurance coverage to informal economy workers in China : An administrative and institutional perspective

Social protection for the informal sector in urban China : institutional constraints and self-selection behaviour

Press/Media

Podcast : Obstacles and opportunities to expand social security for workers in the informal economy in China

Cite this