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Fiscal Implications of Population Aging and Social Sector Expenditure in China

Citation

Cai, Yong; Feng, Wang; & Shen, Ke (2018). Fiscal Implications of Population Aging and Social Sector Expenditure in China. Population and Development Review, 44(4), 811-831.

Abstract

Building on its economic boom and wealth accumulation over the past few decades, China has taken ambitious steps to revamp and rebuild the social programs, especially since the start of the new millennium. A new social benefit regime is now taking shape, including expanded healthcare coverage for both the rural and urban population, a new pension system that includes rural residents, and an increase in public education funding that provides free, nine‐year basic education for all. Many of those efforts are to address the social ills which emerged in China's economic liberalization, such as rising inequality and skyrocketing health care costs. But they are also responses to demographic pressures—accelerated aging among the most obvious and prominent ones. China has announced its intention to further expand social spending and improve the quality of its health care, pensions, and education programs. While such reforms are generally popular, there is also a strong wariness about their fiscal sustainability in the longer term.

URL

http://dx.doi.org/10.1111/padr.12206

Reference Type

Journal Article

Year Published

2018

Journal Title

Population and Development Review

Author(s)

Cai, Yong
Feng, Wang
Shen, Ke