Family Insurance or Social Insurance Policy Options for China's Social Security Reform
Author: LING LI
Published in IJED, Vol. 1 No. 4
The paper starts with a cost-benefit analysis of two alternative systems to provide support for the elderly: family insurance and social insurance. The conclusion is that when a nation’s average income is high enough, the social benefits of a properly designed social insurance program outweigh its social costs. Based on the theory and experience of Western countries’ social security systems, the paper provides a number of policy options for the on-going social security reform in China.