In China, pension systems are managed at the level of the province, and stability of the system is based on the province-level wage rates, contribution rates into the system, as well as number of participating employees. The stability of the system within each province is influenced not only by fertility and mortality, but also by internal migration. Based on population and pension data from 1995 to 2015, this paper analyzes the intersection of migration flows and pension systems in Guangdong Province and Heilongjiang Province. In Guangdong province, in-migration is high resulting in a younger age distribution.Accordingly, a lower contribution rate into the pension system is required. Thus, more and more enterprises will choose this area due to the lower pension cost, with the result that more young workers are attracted and the pension rate continues to decline. In comparison, in Heilongjiang Province, there is an opposite circle.
Presented in Session 6. Health & Mortality & Aging