The saving effect of China’s old-age security system

Using urban household survey dataset conducted by ldquoindividual income distribution projectrdquo in Economics Institution of CASS (China Academic Social Science) in 2002, this paper analyzes saving effect of Chinapsilas old-age insurance system. This paper concludes that Pay-as-you-go public pension wealth has the large crowd-out effect on the private wealth accumulation, and the substitute rate is about 70~80 percent. The empirical analysis also considers that individual account pension wealth has no displacement effect on the household saving, and increases the wealth accumulation.