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Industry/Policy View China’s High Savings: Drivers, Prospects, and Policies Longmei Zhang, Ding Ding, Hui He, Rui C. Mano, Apr 17, 2019
Industry/Policy View China’s High Savings: Drivers, Prospects, and Policies Longmei Zhang, Ding Ding, Hui He, Rui C. Mano, Apr 17, 2019 China’s high national savings rate—one of the highest in the world—is at the heart of its external/internal imbalances. High savings finance elevated investment when held domestically, and lead to external imbalances when they flow abroad. Today, China’s higher savings, compared to the global average, mostly emanate from the household sector, due to demographic changes induced by the 1979 one-child policy and the reshaping of the social safety net in the 1990s. Housing reform and rising income inequality also contribute to higher household savings. Moving forward, rapid ageing will put downward pressure on savings. Still, policy efforts to strengthen the social safety net and reduce income inequality are needed to reduce savings further and boost consumption.
Can Information Influence the Social Insurance Participation of China’s Rural Migrants? John Giles, Xin Meng, Sen Xue, Guochang Zhao, Apr 10, 2019 We use a randomized information intervention to shed light on whether poor understanding of social insurance—in terms of both the enrollment process and the associated costs and benefits—drives the relatively low rates of participation in urban health insurance and pension programs among China's rural-urban migrants. Among workers without a contract...
The Real Driver of China’s Growth: Internal Economic Reform Trevor Tombe, Xiaodong Zhu, Apr 03, 2019 Many people have attributed China’ s growth since 2001 to its accession to WTO and the resulting rapid export expansion. We provide quantitative evidence showing that internal economic reform, not export expansion, was the real driver of China’ s growth in the period after 2001. We also show that there is still large potential growth from further internal reform in China.
Accounting for Urban China’s Rising Income Inequality: The Roles of the Labor Market, Human Capital, and Marriage Market Factors Shuaizhang Feng, Gaojie Tang, Mar 27, 2019 China has witnessed persistent increases in economic inequality since the early 1990s when the urban labor market began its transformation — from centrally-controlled to market-driven. Using the Urban Household Survey data, this paper (Feng and Tang, 2018) documents the trends...
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