Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/212646 
Year of Publication: 
2009
Series/Report no.: 
BOFIT Discussion Papers No. 2/2009
Publisher: 
Bank of Finland, Institute for Economies in Transition (BOFIT), Helsinki
Abstract: 
We relate household saving to pension reform, to explain the high household saving rates in urban China from a new perspective. We use the exogenous - policy induced - variation in pension wealth to explicitly estimate the impact of pension wealth on household saving, and obtain a significant offset effect of pension wealth on household saving. Our estimations show that pension reform boosted the household saving rate in 1999 by about 6 percentage points for cohort aged 25-29 and by about 3 percentage points for cohort aged 50-59. Our results also indicate that declining pension wealth reduces expenditure on education and health more than on other consumption items.
Subjects: 
pensions
pension reform
household savings rate
China
JEL: 
H31
H55
P35
Persistent Identifier of the first edition: 
ISBN: 
978-952-462-959-1
Document Type: 
Working Paper

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