The one-child policy has been one successful tool to eradicate poverty in China, today the growing number of old people is severely undermining the ability to pay decent pensions, warns professor Wang Jianmao of CEIBS in the People’s Daily. Companies might have to pay the bill.
The People’s Daily:
Wang Jianmao, a professor of economics from China Europe International Business School, … expressed concern that the shortfall would become more serious as the country’s elderly population increases and private firms look for ways to evade paying into the social security system on behalf of their staff.
The country’s one-child policy has slowly been eroding the labor pool since the early 2000’s and has obviously reduced the number of workers contributing financially to China’s retirees, Wang said.
Also, as companies in China shoulder a growing proportion of the nation’s social security burden, private firms can be expected to circumvent pension regulations as slowing economic growth reduces their revenues, Wang said.
- Who will employ six million new graduates? – Wang Jianmao (chinaherald.net)
- Weibo: Twitter on crack – Tricia Wang (chinaherald.net)
- Pressure to Repeal China’s One-Child Law Is Growing (nytimes.com)