Social Insurance Participation Differences in Chinese Workers
Info: 30042 words (120 pages) Dissertation
Published: 17th Jan 2022
Tagged: International Studies
SOCIAL INSURANCE PARTICIPATION IN URBAN CHINA: A COMPARATIVE STUDY OF RURAL MIGRANT WORKERS AND URBAN WORKERS IN HUBEI PROVINCE
The purpose of this study is to investigate the differences between rural migrant workers and urban workers in social insurance participation in Hubei Province. This paper presents a new method of examining Chinese migrants’ social insurance participation and signing labour contract by adopting a framework that includes rural migrant workers and urban workers, which are important, but less studied, migrant group. Among our principal outcomes are that urban workers will more probably to sign labour contracts than rural migrant workers, urban workers will more probably participate in social insurance than rural migrant, urban workers with a labour contract have approximately higher participation in social insurance than rural migrant workers with a labour contract and Urban workers or rural migrant workers having a labour contracts have a greater opportunity to participate in social insurance than rural migrant worker or urban workers without a labour contract.
Key words: rural migrant workers, urban workers, social insurance, labour contract
Generally, rural migrant workers face discrimination in accessing different types of social insurance schemes and in job opportunities, moreover even though they got jobs most of them lack labour contracts because of their lack of hukou status.  Migrant workers are not certainly rural workers; they can simply be people living in cities with rural hukou . In a study done in 2015 around 277.5 million migrant laborers (36 percent of the aggregate workforce of 770 million) existed in China.
Out of these, migrant laborers who left their farmland and worked in different regions were around 158.63 million (an growing of 3.4% compared with 2010) and migrant laborers who worked in their home regions arrived 94.15 million (an increment of 5.9% compared with 2010). In 2015 the ratio of female to male migrant workers was two-thirds male to one-third female respectively. The predictions realise that China’s cities will face another 243 million migrants by 2025, growing the city population up to approximately 1 billion people. This population of migrants would be “almost 40 percent of the total city population,” a number which exceeds the current level by three times.
While it is often difficult to obtain accurate statistical data on migrants because the number of migrants is surely quite substantial. In absolute terms, these are huge numbers and their social significance is compounded by the fact that millions of Migrants currently do not have access to the financial subsidy and insurance benefits benefited by b those residents who were formally registered as permanent urbanites under the hukou (registration) system as a consequence, the level of social risk confronting these migrants is very high.
Existing studies of migrant access to social insurance have argued that rural migrants have lower or even no access to social insurance because of their rural hukou status . Thus inequalities in access to social insurance result from the rural -urban divide, state that ‘migrant workers are largely banned from social security and medical benefits in urban cities because they are not official citizens of those cities [and] migrant workers who work in the same units (as local workers) are not allowed to access unemployment benefits (Xu, Guan et al. 2011.
However, if access to social insurance is regarded as a legal entitlement, rather than a bought commodity, it is inexact to represent rural migrants as an association that is still prohibited from the social security system of the city , simply due to the rural -urban divide. For example, By the mid-2000s Beijing established policies to allow rural migrants to engage in all five major social insurance schemes, including pension, health, industrial injury, unemployment and maternity insurance schemes  In other areas that receive large numbers of migrant workers, such as Shanghai and Guangdong, similar policies were also put in place that has anticipated that workers have been entitled to social insurance since the late 1990s.
These policies sharply stated that all employers should sign labour contracts with migrant workers, help them to access social security by joining them at a local labour bureau and take a part in their social insurance accounts subsequently . On retirement, rural migrant workers are qualified to the same pension benefits as urban workers, presented that they have contributed to their account for at least 10 to 15 years. While a nationally consolidated system for migrant workers does not exist, some models of basic social security for migrant workers have been established.
In addition, various recent efforts to provide medical insurance and even housing security programs to migrants have initiated  With the construction of a social security framework in rural and urban areas, the aim of full coverage has become a top priority to be achieved by 2020. Recently, however, survey-based research suggests that fewer than 50 % of the urban population are covered by comprehensive social insurance. Extending coverage would lead to more fair access to protection from a range of risks, including the risk of unexpected health provision costs, the risk of poverty in old age, disability risk and the financial shocks associated with unemployment .
Aside from improving equality, the government has realized that the financial sustainability of existing social insurance programs can make use of improvements in policy design (World Bank, forthcoming) )(. Increasing participation of employed workers and their employers to achieve full coverage by 2020, however, is not sufficient for full coverage in urban China. Complete participation of formal sector workers in urban China would still neglect several important groups of the urban population, including the self-employed, private enterprises employees or enterprises with fewer than eight employees, and six urban residents who are not in the work force.
Urban workers in these groups, who lack formal employment relationships, lack also an employer as a source of co-financing for social insurance programs . A basic medical insurance program for urban residents that includes a social insurance component was established in 2007 and participation has improved rapidly , and a pilot urban resident pension program was announced in July 2011 with the aim of covering all cities by the end of 2012. Moreover, social insurance programs in urban China are often employment based.
In the formal sector, especially state-owned enterprises, employers are required to contribute to all their employees’ investment enterprises, township and village enterprises, or individual businesses that are typically focused on the manufacturing, construction, catering services and hotel, and other low-technology industries. Migrant workers job insecurity is reflected in the small proportion of employment contracts signed with employers. 79% of migrant workers had no written labour contracts with their employers in 2004 . Therefore, the majority of migrant workers, who usually lack formal contracts with their employers, are not qualified to such job-related benefits.
Moreover, both the high mobility of migrant workers and the low portability of social insurance accounts create an inhibition for both employers and migrant workers to participate in social insurance programs. The high contribution rates for social insurance further hinder employers and migrant workers from participating in the social insurance system. The basic social security insufficiency has increasingly threatened both the sustainability of migrant labour and social stability. In addition, the lack of micro data on the migrants often inhibit studies on their work and life conditions and social insurance needs.
We extend the literature on access to social insurance in urban China in several ways. Our first contribution is to extend the literature on migrant access to social insurance to compare rural migrant workers and urban workers. In so doing, this paper begins to fill one of the gaps in our understanding of how urban workers and rural migrant workers compare in terms of an important socioeconomic dimension.
Our second contribution is to propose, and test, an alternative which we compare rural migrant workers and urban workers to participate in social insurance in terms of whether the individual has signed a labour contract rather than his or her hukou status per se, the Chinese government has sought to expand labour contracts to all employees in the formal sector.
Regardless of the terms of the contract, any identifiable employment relationship should be recognized and provided equal treatment. If properly implemented, this will lead to an integrated social security system for all people working in cities through enforcing employer-based social insurance. While remembering that rural hukou type continues to be a root of discrimination for rural migrant workers despite the legal entitlement, we suggest rural hukou status has declined in importance as a source of discrimination.
At the same time, we suggest that whether or not migrants have resident hukou, signing a labour contract is the more important determinant of access to social insurance. The next two sections discuss the declining importance of personal characteristics and social capital variables and the increasing role for labour contracts as a means to predict who will receive social insurance in the Chinese urban labour market.
The data used in the analysis is discussed in Section four and Section five presents the results. Specifically, we test four hypotheses.
The first is that urban workers will more probably to sign labour contracts than rural migrant workers.
The second is that urban workers will more probably participate in social insurance than rural migrant. Urban workers having a labour contract have a greater opportunity to participate in social insurance than rural migrant workers or urban workers without a labour contract.
The fourth is that urban workers or rural migrant workers having labour contracts have a greater opportunity to participate in social insurance than rural migrant workers or urban workers without a labour contract.
Foreshadowing the main findings, we find support for each of these hypotheses. The final section concludes with a summary of the main findings and suggestions for future research.
1.2 Research purpose and significance
1.2.1 Research purposes
Based on this large social background, this paper conducts an empirical survey on the status and influencing factors of the public participation of the floating population and compares it with the local residents. The research contents are mainly from the following aspects:
First: the floating population and residents with local household registration in the participation, participation and participation in the effect of whether there are significant differences? In which areas are there significant differences?
Second, does the modern capital and social network have a positive effect on public participation, in addition to the institutional constraints of household registration, where there is a significant difference in the floating population and the residents with local household registration?
Thirdly, based on this study, we will improve the current situation of public participation of the floating population, promote the urbanization of the floating population and the urban integration.
1.2.2 research significance
Theoretical significance. With the migration of the floating population from the survival to the development of the type of change, to promote the floating population of the people gradually increased to a national strategic level, the state of the floating population management objectives are being planned to promote the integration into the transition, from the restrictions to the service transformation Beihai, 2011). Public participation is the important carrier of the floating population to express their own interests and protect the vital interests of the individual.
It is an important carrier and realization of social integration. However, from the current research, the participation of the floating population is weak and the participation is insufficient. The consensus. Based on the theory of state-society relationship, this study compares the difference between the floating population and the urban residents with local household registration, the differences in participation and participation, and tries to improve and promote the public participation of the floating population Of the countermeasures and suggestions to help further improve the current theoretical perspective and research conclusions.
With the acceleration of urbanization and modernization, more and more migrant workers enter urban employment, settlement and life, and realize the transition from geographical space to production space to living space. At present, many scholars have studied the urban integration of the floating population, urban adaptation, urban identity, social integration, etc., which in essence reflect the integration of floating population in urban society. Urban integration is a “re-socialization” process, which involves the economic level, social life level, social and psychological level of integration. “Social participation is the core content of urban integration, integration and exclusion depends on the degree of participation” (Shi Lirong, 2005), the floating population in the inflow of participation is not only conducive to its protection of their own interests, is conducive to promoting their social interaction.
The establishment of social networks, and thus promote the social integration of their individual, at the same time, in the context of the public, but also help to promote the integration of urban society as well as the democratic political system and the rule of law society, help to accelerate the formation of party leadership , The government is responsible, social coordination, public participation, legal protection of the social management system
Social Insurance and Migrant Workers
Insurance against old age, unemployment and sickness was built in china, the unique social insurance system of china is clearly spited.by the urban –rural line. . Any Chinese citizen is born to have either urban or rural household registration system, with the urban citizens relishing numerous entitlements to social services and better opportunities while rural bear gets very few chances to have urban hukou. The rural-to-urban migrants regardless of being actually live and work in the city still have restricted access to the urban social benefits because of their rural household registration system..
The social insurance including old age insurance, medical insurance and unemployment insurance In 2007 were only 0.13% of total household income for rural workers, whereas 17% of local citizens  In urban China five kinds of social insurance existed, all of which are mainly provided through employers: pensions, work injury, and maternity medical, and unemployment insurance. Both employers and employees are asked to make financial donations to the social insurance programs. Another important employment-based benefit which is the housing fund was established in 1994 to help employees create personal housing fund accounts and improve their housing affordability as housing became privatized and housing prices elevated extremely. .
Employers were usually alleged in the past that they have not paid social insurance donations for migrant workers because the workers themselves are not interested in a pension. They thought that the high contribution rates and the lack of transferability of pension accounts are attributed to migrant workers do not find the system attractive. Moreover, the underlying reason rural migrant workers are miserable about making old age contributions is not because the rates are too high but rather because their basic earnings are too low and any deductions will have a greater impact on their living standards. A study done by the China Household Income Project 2002 revealed that only 5% of migrants had any social insurance coverage and any contributions that they received were taken back by the taxes and fees that they were required to pay 
While the Chinese government has improved the rural social insurance system in recent years, many rural workers also get some basic social insurance coverage, mainly medical insurance, in their villages. These benefits are usually not transferrable to the cities where they work and live, neglecting the migrant workers only the actual coverage from their local insuranceFurthermore, it was utilizing from CHIP 2002 data that the migrants were 8% units less expected to be included in social insurance compared to urban citizens. Using survey data from seven cities all around China in 2006, found that less than 10% of migrant workers participated in employment-based social insurance programs.
This study concluded that, because of the migrant demand of urban Hukou and their job characteristics, their lack of knowledge regarding social insurance schemes and unwillingness to participate also attributed to their low levels of social insurance participation. . Certainly, there are both reinforce and restraints for the migrant workers to participate in social insurance On one side, social insurance would give rural migrant workers more life in hard times of unemployment, sickness, injury, and old age and to have greater human security.
On another side, rural migrant workers have to make regular contributions to participating in the social insurance programs, which might be not only a high amount but given their low stability and high mobility, the migrant workers may have a reasonable reticence regarding the participation of social insurance programs..Most of the social insurance benefits require an employee contribution that would be regarded as a high amount for the simple rural migrant worker but also are nontransferable across jobs or localities. These factors become hindrances to migrant workers’ participation in social insurance. In recent years, to address unbalanced social insurance coverage among its citizens and ensure social stability, the Chinese government has made attempts to broaden the perfusion of several social insurance programs.
In 2006, agricultural taxes in rural China were reduced nationwide, the Dibao (or Minimum Livelihood Guarantee) program was performed nationwide in 2007, and Rural Cooperative Medical Insurance was fully reestablished by the end of 2008. The government also initiated the conduction of a rural pension program in 2009, which expanded to cover 40% of all counties by 2011. The number of workers covered by several social insurance schemes in urban China – containing, unemployment, pensions, medical and maternity insurance – all had notable increases between 2004 and 2010. Although, most of these increases were restricted to workers in the formal sector and did not reach migrant workers..
A pilot program was unveiled to provide basic health insurance to anyone who work in the informal sector in 2007, including rural migrant workers and it was expanded nationwide by 2010, comprising 195 million urban workers (Lardy, 2012). An essential point to note is that the rural migrant worker population is getting older: Most of them are middle-aged and planning for their retirement. Data obtained from the annual survey of migrant workers in China reveal that the proportion of workers were 16 to 30-years of age fell from 42 % in 2010 to 33 % in 2015, while the percentage of workers over 40-years of age has jumped from 34 % in 2010 to 45 % in 2015. Across a few years ago, many of these older workers have been at the frontal part of workers’ demands for the salary of social insurance. As the migrant workforce continues to age, those demands will only get heavier..
In this study, we focused exclusively on the migrant workers’ urban social insurance participation to examine the possible influence of the status of their labour contracts with employers. This, however, was an important omission and may bias our estimates of the association between their labour contract status and social insurance participation. Those with rural social insurance – mainly medical insurance and pensions as described above – may be less likely to participate in the urban programs given that they already have some level of protection. However, because most migrant workers work and live in the cities, it is difficult for them to travel back to their home villages to utilize the rural medical insurance except when they have serious diseases.
More importantly, many local governments forbid migrants from benefiting from both urban and rural medical insurance, leaving the migrant workers only de facto coverage from their urban insurance. Therefore, in this paper, we only examined the migrant workers’ participation in the urban medical insurance program. In addition, given that the rural pension program was only piloted in selected counties in 2009, we focused solely on urban pension coverage for migrant workers. These omissions, while not jeopardizing the main purpose of this paper, would lead to an upward bias in our estimation of the association between migrant workers’ labour contract status and their urban social insurance participation.
Rural migrant workers participation in Social Insurance
Smith and Fan (1995) have described migrant workers as an emerging urban underclass. Urban residents tend to ‘look down’ on migrant workers and treat them as scapegoats for a wide range of social ills in Chinese cities including congestion, crime, degradation of the environment, housing shortages, and the undermining of employment conditions  Discrimination against migrants in their dealings with the labour market and the social security system is pervasive. As a result of not having an urban registration (hukou), most of China’s migrants have been denied access to the provisions automatically enjoyed by those with urban registration; a situation we highlight in this section in relation to a number of key social security schemes.
According to the Labor Insurance Regulations of the People’s Republic of China promulgated by the central government in 1951, workers in the state sector were covered by an enterprise-based social security system, including pension insurance and other types of benefits, such as free health services, paid sickness leave and insurance for injury.
However, this coverage is not available for those living and working in rural areas due to two major characteristics of the Chinese pre-reform social security system, i.e. the separation of urban and rural areas and segmentation of urban enterprises based on their ownership status. Since the social insurance reform in the early 1990s, the new pension system has made individual contributions compulsory based on a uniform levy-rate and covered all employees with local urban household registration. Without such a registration, migrant laborers working in cities have been denied access to the pension and other types of insurance
There are three pension programs in China . Apart from the obligatory basic pension insurance scheme for urban employees, the government has also an urban residents pension program and a countryside pension program . Rural inhabitant or urban inhabitant who are not employed can join these respective protections on an voluntary premise. pension for labourers in China are funded by contributions from both the employee and the employer. The portion given by the employer is normally higher than the portion given by the employee.
Generally, the employer’s contribution is usually between 10 percent and 22 percent of the monthly salary given by employees . Pension donations made by the employees go instantly into their “personal” pension accounts, while the contributions made by the organization go into “social” record. The worker will contribute approximately 8 percent. Anybody can gather fundamental pension on a month to month basis if the cumulative premium payment time frame reaches 15 years at the time he/she fulfills the legitimate retirement age .
China presently has about 185 million people above the age of 60, constituting 13.7 percent of the Total population. China’s urban and rural pension insurance program currently includes 486 million people, with as many as 133 million elderly people getting monthly pension payments .
Finantial support for pension insurance is provided by the state, companies, and individuals as described below. The state provides operating funds for labor and other administrative expenses of social security administration, as well as rescue funds in case of financial difficulty.
In 1997 the basic structure of China’s pension program was established under the State Council Decision on the Establishment of a Unified Basic Pension System for Enterprise Workers. In mid-2016, various provinces and cities, containing Beijing, started to reduce the employer’s contributions by 1% (from 20 % to 19 % )
Workers become qualified for pension advantages when they reach the legal retirement age but only if they have joined in the scheme for at least 15 years. Those who have joined for less than 15 years may postpone retirement until they have contributed for 15 years, pay the remaining required contributions, transfer their pension plan to a plan for non-employed rural or urban residents, or receive the entirety of their individual account, including interest, in a lump sum payment .
Industrial injury insurance
Urban registered workers have long been covered by occupational health insurance. By contrast, most migrants do not enjoy this right, despite the fact that a great many works in so-called ‘three D’ jobs – those that are ‘dirty, dangerous and demeaning’. Contributions to this fund are made by the worker for the majority of its workers. As a rule, the premium is between (0.5 percent to 3 percent ) of the worker,’ wage, with the accurate rate reliant on the kind of work involved, since the risks of sustained work related damage differ accordingly.
Workers who have sustained work related harm or ailment are qualified for health advantages. Meal recompenses amid hospitalization transportation, n nourishment and accommodation and rehabilitation costs, and that for supporting hardware, for example, prosthetic appendages, are likewise secured by the fund. workers who become disabled and whose work abilities are influenced accordingly of the work related harm ought to get a work capacity assessment to assess his/her work inability level. work related inadequacy is ordered into ten levels, with level one being the most genuine insufficiency and level ten being the slightest serious.
For each level a comparing level of single sum incapacity salary and a month to month handicap subsidies apply. For level seven to level ten incapacities, the worker will pay a singular amount work allowance to the worker toward the finish of the work relationship . Workers are likewise qualified for paid leave for restoration, which ought to customarily not surpass 12 months with the exception of when due to serious injuries or under uncommon conditions. The firm will responsible for paying full wage to the worker and additionally social protection premiums during the paid leave time frame. Is serious not that, if an employee has genuine damage at work the firm cam liable for all expenses of treatment if the protection premiums have not been paid up to date. An employee or laborer will be resolved as inflicting a work in jury if he/she is
- Injured in a work-related mishap at the working environment amid work hours;
- Injured in a mishap when coordinating work related readiness or shutting down at the work environment shortly before or after work hours;
- Injured in a mishap when directing work related readiness or shutting down at the work environment shortly before or after work hours;
- Inflicted with a occupational illness;
- While going for work, injured because of work reasons or becomes missing after confronting an accident; or
- Injured in a traffic crash in which the injured worker does not assume main accountability, or in a urban rail transit, traveler ferry or train accident on the way to or back from work.
An employee or worker will also be considered as having suffered a work injury if he/she dies immediately or within 48 hours after failed emergency medical treatment from an unexpected illness suffered during work hours and at the work post. In this case, the employee’s family members are entitled to receive a funeral allowance, a dependant’s pension, and a lump-sum death allowance.
Employees should give the work injury determination applications with the social insurance administration department within 30 days of the accident or of being diagnosed with an occupational disease, and are required to show evidence of the employment relationship and medical diagnoses. Where an employee is sent to work outside of China and is required by the laws of the host country/region to participate in work-related injury insurance locally, his/her insurance in China can be suspended. In the decade from 2006 to 2015 the number of workers protected by work-related injury insurance more than doubled. However, the current total of 214 million employees still only accounts for 28 percent of the whole workforce in China. Moreover, only 27 percent of rural migrant worker are truly covered.
The risk of illness among migrant workers is generally high because most live in crowded and insanitary housing. As Smith and Fan ((1995) observed: [Migrants] are most likely to be relegated to whatever is available. Many share living quarters with relatives or other transients, often in the cheapest and meanest sections of the city The addition of vast quantities of food and solid waste due to increased numbers of people living in poor sanitary conditions increases air and water pollution and contributes to the prevalence of disease.
In some large cities such as Guangzhou and Shanghai, outbreaks of ‘old’ diseases such as malaria and tuberculosis have reappeared in areas with high concentrations of migrant workers . Despite these manifest risks, only a limited number of migrant workers have been able to access health insurance. Evidence from interviews with migrant workers suggests they are willing to risk living in the cities without medical insurance because many ‘thought they were unlikely to require extensive medical treatment because they were young and healthy, and also because they had been careful (and lucky) to this point’.
China currently has three medical insurance programs. They are:
- Urban resident basic medical insurance;
- Urban employee basic medical insurance; and
- New rural collaborative medical insurance.
The first one is a mandatory insurance for urban employees of state-owned or private enterprises financed by employers and employees, while the two other insurance schemes have been constructed for low-pay residents and are deliberate protections funded by the state and individuals. Commitments for urban worker essential medical protection contrast extensively by area. As per the Decision on Setting up the Basic Medical Insurance scheme for workers in urban and Towns publish by the State Council in 1998, the worker’s rate ought to associate with 6 percent of the aggregate wages of its workers.
Right now, firms are for the most part required to contribute between 5 % to 12 % of the worker’s a month to month wage, while workers contribute about 2 %. China’s medical protection framework now covers more than 1.3 billion individuals, or 95 percent of the population, with the measure of the fund proceeding to develop. In 2012, China’s total medical insurance expense exceeded RMB900 billion. Since medical treatment was free, patients themselves often asked for such excessive treatment. Thus from the 1990s, the medical insurance system experienced fundamental reform.
The structure for China’s medical insurance system was first introduced State Council in the 1998 Decision on the Establishment of a Basic Medical Insurance scheme for Urban employers and employeea。Both workers and employers are required to make payments to the basic medical insurance scheme which, like the pension scheme, combines an individual account with pooled funds. Though the amounts vary from region to region, workers typically contribute two percent of their individual wages – all of which goes directly to their individual account – while employers usually contribute between six and 12 percent of their workforce’s salary, a proportion of which (usually 30 percent) goes into the workers’ individual accounts while the remainder goes to the public fund.
A national uniform medical insurance system was promulgated in 1998, at which point a new system was finally developed
For individuals, the premium rate is 2% of their average wage (including bonuses), and premiums are contributed to their individual medical insurance accounts. Companies contribute 6% of the total average wage expense as medical insurance premiums. Of this amount, 70% is allocated to the medical insurance fund, and the other 30% to individual medical insurance accounts. Medical insurance benefits are determined by comparing actual medical expenses against a schedule of benefits. Benefits start when medical expenses reach the provision start line of approximately 10% of local average annual wages, and peak out when medical expenses exceed the ceiling of approximately four times the average annual wage. Specific benefit levels are determined by the local government.
(i) For medical expenses below the start line, no benefits are paid out of the medical insurance fund. Expenses are paid from the individual account or out of pocket.
(ii) For medical expenses between the start line and maximum, benefits are paid out of the medical insurance fund, but the individual must also pay a deductible.
(iii) For medical expenses above the maximum, the individual must pay the full amount.
Alternatively, the individual can enroll in supplementary company insurance, individual insurance with a savings component, or other private insurance. If the employer is in a good condition, the company may also voluntarily offer assistance. As with pension insurance, the pooled medical insurance fund and individual accounts represent a fundamental reform from the previous system.
The Social Protection Law ؤthat the therapeutic protection store ought to incorporate laborers’ medical expenses by paying service providers (normally healing centers and facilities) quickly. In any case, as a rule, laborers need to pay up-front and ask for remuneration from the authorities later. Further, to be met all requirements for public insurance funds, doctor’s facility medications must be on a pre-endorsed government list – medicines outside of the pre-affirmed list must be paid out of either the specialist’s individual account or their own particular pocket 
The number of labours and retirees secured by the essential medical protection has expanded consistently in the course of the most recent decade yet at the same time just stands at around 289 million. The number of rural migrant laborers with essential medical protection in 2015 was only 52 million, a slight lessening over the earlier year. In correspond, the quantity of urban inhabitants (predominantly non-working mates and kids) who are secured by the Urban Occupant Fundamental medical Protection Insurance Scheme has raised forcefully to remain at 377 million in 2015.
The plan, which was presented in 2007 and points cover the dominant part of inpatient therapeutic expenses for members, depends on individual commitments together with nearby and focal government endowments. A comparable program, the New Helpful Medical Plan keeps running in countryside and individual contributions are normally set at a low level. Be that as it may, most by far of rustic inhabitants will in any case need to go to significant urban areas for treatment in extreme cases in view of an absence of high-quality medical facilities in their home towns.
There is a wide perception that migrants are rarely out of work. Argued that though it is not possible to accurately document the levels of unemployment within the floating population, it is our impression that this number is relatively small. There are many opportunities to participate in the informal market. In a study of migrant workers in Shanghai conducted by the Ministry of Labour and Social Security in 2001, 25% of respondents reported being out of work, 30% of respondents had changed their jobs once and 15% of respondents had changed their jobs two or more times in the six months prior to the survey.
In the survey of migrant workers in Fengtai District in Beijing discussed earlier, 33.5% of respondents reported being in a situation where they had absolutely no work to do on at least one occasion since leaving their hometown. Of those who had been out of work, the longest period out of work was divided into 1–2 months (47.7%), 3–5 months (22.9%), 6–11 months (19.6%) and 12 months or more (9.8%) . A further issue concerns how migrants support themselves when out of work. The survey of migrant workers in Fengtai District in Beijing found that when unemployed 41.1% relied on their own savings, 36.1% borrowed from family, friends or other migrants and 14.6% returned to their hometown.
As per the Unemployment Protection Directions declared by the State Council in 1999, bosses ought to contribute 2 percent of the aggregate pay paid to its employees to the unemployment protection subsidize, while workers ought to pay 1 percent of their own wages to the fund, An unemployed individual that meets the accompanying conditions can gather unemployment protection remuneration:
- Both the employer and the unemployed individual have paid unemployment protection premiums for one year before the individual ended up noticeably unemployed;
- The unemployed individual’s work is fired without wanting to; and
- The unemployed individual has attempted unemployment enlistment and is presently looking for employment.
Toward the finish of 2015, including only 42 million country migrant laborers of 173 million workers, had unemployment protection. Those secured are qualified for advantages, including the continuation of medical protection, if they wind up plainly unemployed. The consistency of advantages relies on upon the duration of time the employee has paid into the system, with a most extreme of 24 months of advantages for the individuals who have been utilized for ten years or more.
In the absence of constraints that operate in the work unit, most female migrant workers have more than the prescribed one child per family in urban areas. Official estimates attribute most of the unplanned pregnancies in cities to migrant workers. One reason for the high birth rate among migrant women is that about 70% of migrant workers are in the most fertile age group (16–35 years old). Another reason is that because migrant workers lack connections to work units this restricts their access to birth control devices as well as health care facilities before and after birth.
Without any form of medical insurance, more than 90% of female migrants have to pay for health expenses out of their own pocket. These costs are exorbitant for most migrant women and their families who live on low and uncertain earnings. Of those migrant women who do visit urban hospitals, most delay check-ups to the last moment, meaning that they do not get adequate medical care. In hospitals, the rate of both premature birth and stillbirth is almost two times higher among migrant women than for local women.
The difficulties confronting pregnant migrant women are exacerbated by the lack of legally sanctioned maternity laws in the workplace. Even among those with an urban registration, pregnant women and women on maternity leave are more likely to be laid off in loss-making enterprises, particularly those in the private sector. Migrant women are also afforded much lower rights. Legally guaranteed maternity leave often does not apply to migrant workers. The objective of maternity protection is to give the vital support to working ladies to come back to their employment posts subsequent to conceiving an offspring.
For the most part, just the employer makes a contribution of between 0.5 percent to 1 percent of the worker’s payment to this fund. As per the Unique Arrangements on Work Assurance of Female Workers. proclaimed by the State Council on April 28, 2012, a pregnant female worker ought to be given 98 days of maternity leave, of which 15 days can be taken prior to conceiving an offspring.
In the event that the employees experience discouraged work, the maternity leave period ought to be extended by 15 days. On account of twins or multiple births, the maternity leave ought to be extended by an additional 15 days for each extra child. Likewise, a pregnant female worker ought to get 15 days of maternity leave in the event that she has an abortion in the initial four months of pregnancy, and 42 days of maternity leave on the off chance that she endures abortion after the initial four months of pregnancy.
A few urban areas, for example, Dalian, give longer maternity leave during the maternity leave period, the pregnant worker will get a month to month maternity stipend from the protection subsidise in a sum proportional to the earlier year’s average pay paid by the enterprise to its employees .
According to the official figures, the number of employees covered by maternity insurance has grown As indicated by the official figures, the quantity of employees secured by maternity protection has become consistently throughout the most recent decade to remain at 178 million toward the finish of 2015. however, the quantity of workers actually profiting by maternity protection fund is as yet constrained on the grounds that numerous employers screen out the forthcoming employees who may get pregnant and find ways to dispose of workers who are pregnant. In 2015, just around 6.4 million employees got maternity benefits about 41.1 billion yuan, a normal installment of 6,422 yuan for each employee .
The Housing Provident Fund is not officially part of China’s social insurance system: It is managed by the Ministry of Housing and Urban-Rural Development instead of the Ministry of Human Resources and Social Security. However, it is often classified together with the five official social insurance programs since it runs in a similar manner, with benefits funded through contributions paid by employers and their employees .
The fund was first established in 1999, a period when a huge number of workers were being laid off from state-possessed enterprises (SOEs) crosswise over China. The legislature could no longer depend on SOEs to meet the Housing needs of employees so the housing Asset was advanced as a methods by which workers could pay for and keep up their own home .
The Controls on the Organization of Housing Funds (住房公积金管理条例) express that employee and employer contribution rates are to be dictated by the local government however it should not be lower than five percent of the average salary at the company. In Beijing, for instance, bosses need to contribute 12 percent of the normal wage through the previous year and employees contribute 12 percent of their monthly wage. In Shanghai, employers contribute seven percent of the average wages amid the previous year and workers contribute seven percent of their average monthly wages in the earlier year. In all cases, contributions are made on a monthly basis and are tax-deductible
The quantity of employees adding to the housing fund appears to have changed around the 100 million mark for the most recent decade which is not at all like the five social protection plans, which have seen standard and generous increments in coverage in the course of the most recent decade. In 2008, there were apparently 110 million workers in the plan. The quantity of contributed workers apparently went down to 91 million in 2011 yet was move down to 107 million before the finish of August 2014. The aggregate amassed finance, as of August 2014, was a little more than seven trillion yuan, as indicated by figures from the Ministry of Housing and and Urban-Rural Development. A large portion of the members in the plan are government workers, public servants and experts in the private sector.
Expectations on Change Sooner rather than later
As per the thirteenth Five-Year Arrange, the Chinese government will consolidate the maternity protection into the essential medical protection later on. In such case, the Chinese social protection plan will be changed from “five sorts of protection” to “four sorts of protection”, which incorporate the pension, basic medical insurance, unemployment insurance and work injury insurance. The integration of both maternity insurance and medical insurance will ultimately enlarge the number of beneficiaries, enhance the utilisation of the insurance fund and reduce the functionality costs.
Moreover, through the period of the 13th Five-Year Plan, the Chinese government also endeavours to realise the nationwide regulation of the pension scheme, which is now only regulated at the provincial level and has wide contribution gaps between enterprises at various places. For example, the pension premium paid by the employer is 20% of the employee’s average monthly pay in Shanghai while it is just 14% in Guangzhou. Once such across the country co-appointment is accomplished, the pension premium will be paid at a bound together rate which is predicted to be lower in the general view.
Labor contracts and migrant workers
As mentioned before, social insurance coverage in urban China is related to workers’ employment and labour contract status. Two labour laws had a remarkable impact on Chinese workers. The most recent one, the Labor Contract Law of China, came into effect on 2008.. This new law was designed to protect the lawful rights and interests of workers by improving employment contract procedures and broadening social insurance coverage for employees and ultimately to maintain social stability.
A fundamental requirement of this law is that participation in social insurance schemes is open to migrants, provided that they sign a formal labour contract . The 2008 LCL made significant changes to the previous 1995 Labor Law. Under the 1995 Labor Law, employers could refuse to sign labour contracts with workers or choose to only sign short-term contracts, a condition that made most workers, especially migrant workers, very vulnerable in terms of their rights and benefits.
To rectify this, the 2008 LCL stipulated that an open-term labour contract (i.e., with no fixed termination date) is deemed to be in effect if an employee has worked continuously for the same employer for at least 10 years or if the employee has successfully concluded two consecutive fixed-term labour contracts.. Moreover, if an employer fails to sign a written labour contract with an employee within 1 year after the employee began working for the employer, an open-term contract can also be assumed. 
Many migrant workers see the new law as an opportunity to improve their work conditions. By September 2008, more than 90 percent of rural migrant workers in large-scale enterprises and 65 percent in medium and small-scale enterprises had signed labour contracts with their employers, compared to less than 20% for large-scale enterprises before the authorization of the LCL. . Another main purpose of the LCL is to conjugate informal workers into the existing social insurance system and motivate employers to provide social insurance for their employees.
Depending on the LCL, employees should contribute to their employees’ the social insurance costs, nevertheless, the employees are migrant workers or have local Hukou. Social insurance should be included in the employee’s labour contract, and an employee may terminate the labour contract and request financial reparations if the employer does not pay for the employee’s social insurance . Therefore, the labour contract system is the key to examining social insurance participation among the floating population.
Some studies mention the relationship between labour contracts and social insurance in passing.  For example quote a migrant who revealed that a work unit bought insurance for him or her as required by his or her labour contract, while point out that the medical insurance system needs a formal employment relationship as a basis for operation.
According to 2005 one percent national census, one study presents descriptive statistics dealing with insurance participation among rural migrant workers and urban workers in the state and non-state sectors, but it does not examine why rural migrants had lower participation rates than urban workers .
Some studies (in Beijing in 2007 and 2008) examine the relationship between labour contracts and migrant participation in social insurance in urban China and these studies revealed that signing a long-term labour contract increased migrant participation in social insurance.[65, 66].
Another study showed that the increments in migrant participation in social insurance in Guangdong are attributed to the establishment of the 2007 Labour Contract Law.
Neither study, though, distinguished between rural and urban migrants. Rural migrants, in general, have poor knowledge of labour contracts and limited access to information and institutional assistance from labour bureaus and trade unions. Being denied labour contracts is also a consequence of rural migrants’ relatively informal pattern of employment. Most of them were unable to enter the state sector which reserved jobs for locals. .
In a competitive labour market, many take up un-contracted, temporary jobs from subcontractors and labour dispatch companies which do not work under a clearly determined legislations between employer and employee, and under which labour contracts are mostly unavailable. This usually creates a problematic double absence in legal terms: an ‘absent’ boss and an ‘absent’ labour relationship.
Moreover, many rural migrants find informal, temporary and insecure jobs through their social networks (such as kinship and friendship) which further impede their ability to sign labour contracts.. In contrast, urban citizens, whose numbers have been increasing, and who have been living and working in a relatively formal state-led urban labour system since the founding of Communist China, have been more deeply involved in the urban labour market reform, and have benefited from its partial standardization in current years .
As a part of state-owned enterprise (SOE) reform since the mid-1990s, employees in the state sector have gradually transformed their institutionally guaranteed lifelong employment to market-based contractual employment . The labour contract system has been relatively well implemented in the state sector, in which the major labour force have been urban hukou holders. It was claimed by Official statistics that most employees in large SOEs have signed labour contracts)); however, in comparison, only around 13 % of employees in the non-state sector (where rural migrants are the major labour force) have signed labour contracts (All-China Federation of Trade Union, 2007).
In this paper, the comparison between the rural migrant workers and urban workers in their labour contract status and social insurance participation were examined, including unemployment insurance, medical insurance, pensions, work injury, maternity insurance, and the housing provident fund. We utilized the data survey to find out the effects of differences in the rural migrant workers’ and urban workers’ contract status on their social insurance participation.
Social protection around the globe
Social protection programs have turned into the most critical, the most costly, and regularly the most disputable part of government domestic policy, in the United States as well as in numerous different nations, including developing and modern countries. In the United States, these projects incorporate Social Security retirement, and survivor protection, unemployment protection, and the Medicare health care coverage for those age 65 and more seasoned. Together they accounted in handicap 2003 for 37 percent of government spending and more than 7 percent of GDP. These proportions have expanded quickly in the past and are anticipated to 1increase significantly quicker later on as a result of the more fast maturing of the populace.
A great deal of research has been accomplished for nations other than China to comprehend why a few people are more eager to take an interest in social protection than others and why a few plans are more alluring than others Shuey (2004) concentrated the choices settled on when laborers confronted a decision of characterized contributions arranges and supplemental benefits arranges.
The discoveries recommended that sex contrasts and conjugal status impacted basic leadership. Rege et al. (2007) assessed the extent of social connection impacts in disability benefits support among more seasoned workers in Norway. They found that individuals will probably draw on disability benefits when neighboring plants were scaled down. Li and Olivera (2005) inspected the determinants of enrolment in the annuity framework in Peru and found that a chose gathering of individuals i.e. hitched guys with in any event optional training, high pay people and people with other relatives officially taking an interest in the annuity framework, will probably take an interest than other social gatherings.
There are a genuinely substantial number of studies on social welfare and social protection cooperation of transients which can offer bits of knowledge into their basic leadership. Past examine has looked at the take-up rate of transient gatherings and locals. These reviews don’t unequivocally examine the part of data. In any case, they verifiably propose that wellsprings of data can be pertinent. For instance, informal communities, in specific ethnic gatherings, or relatives have assumed imperative parts in affecting basic leadership as for take-up rates.
Format of Country Summaries
Each country summary presents information available on five branches of social security:
- Old age, disability, and survivors;
- Sickness and maternity;
- Work injury;
- Unemployment; and
- Family allowances.
Old Age, Disability, and Survivors
Benefits under old age, disability, and survivor programs usually cover long-term risks, as distinct from short-term risks such as temporary incapacity resulting from sickness and maternity, work injury, or unemployment. The benefits are normally pension’s payable for life or for a considerable number of years.
Such benefits are usually provided as part of a single system with common financing and administration as well as interrelated qualifying conditions and benefit formulas.
The laws summarized under Old Age, Disability, and Survivors focus first on benefits providing pensions or lump-sum payments to compensate for loss of work-related income resulting from old age or permanent retirement. Such benefits are usually payable after attaining a specified statutory age.
Some countries require complete or substantial retirement to become eligible for a pension; other countries pay a retirement pension at a certain age regardless of whether workers retire or not. The second type of long-term risk for which pensions are provided is disability (referred to in some countries as invalidity).
Disability may be generally defined as long-term and more or less total work impairment resulting from a non-occupational injury or disease. (Disability caused by a work injury or occupational disease is usually compensated under a separate program; see Work Injury.)The third type of pension is payable to dependents of insured workers or pensioners who die. (Pensions for survivors of workers injured while working are usually provided under a separate Work Injury program.)
The extent of social security coverage in any given country is determined by a number of diverse factors, including the kind of system, sometimes the age of the system, and the degree of economic development. A program may provide coverage for the entire country or some portion of the workforce.
In principle, universal systems cover the entire population for the contingencies of old age, disability, and survivorship. A person may have to meet certain conditions, such as long-term residence or citizenship. Many countries exclude noncitizens from benefits unless there is a reciprocal agreement with the country of which they are nationals. The extent of employment-related benefits is usually determined by the age of the system.
Source of Funds
The financing of benefits for old-age, disability, and survivor programs can come from three possible sources:
- A percentage of covered wages or salaries paid by the worker,
- A percentage of covered payroll paid by the employer, and
- A government contribution.
Almost all pension programs under social insurance (as distinct from provident funds or universal systems) are financed at least in part by employer and employee contributions. Many derive their funds from all three sources.
Contributions are determined by applying a percentage to salaries or wages up to a certain maximum.
Qualifying to receive an old-age benefit is usually conditional on two requirements: attainment of a specified pensionable age and completion of a specified period of contributions or covered employment.
Another common requirement is total or substantial withdrawal from the labor force. In some instances, eligibility is determined by resident status or citizenship. Old-age benefits generally become payable between ages 60 and 65. In some countries, length-of-service benefits are payable at any age after a certain period of employment, most commonly between 30 and 40 years.
The old-age benefit in most countries is a wage-related, periodic payment. However, some countries pay a universal fixed amount that bears no relationship to any prior earnings; others supplement their universal pension with an earnings-related pension.
Provident fund systems make a lump-sum payment, usually a refund of employer and employee contributions plus accrued interest. In programs that have individual accounts, options for retirement include purchasing an annuity, making withdrawals from an account regulated to guarantee income for an expected lifespan (programmed withdrawals), or a combination of the two (deferred annuity).
Benefits that are related to income are almost always based on average earnings. Some countries compute the average from gross earnings, including various fringe benefits; other countries compute the average from net earnings. Under most programs, provisions for disability benefits for persons who are permanently disabled as the result of non-occupational causes are very similar to those for the aged.
The same basic formula usually applies for total disability as for old age—a cash amount usually expressed as a percent-age of average earnings. Increments and dependents’ supplements are generally identical under the total disability and old-age programs. For persons with total disabilities, a constant-attendance supplement, for instance, 50 percent of the benefit, may be paid to those who need help on a daily basis. Partial disability benefits, if payable, are usually reduced, according to a fixed scale. The system may also provide rehabilitation and training. Some countries provide higher benefits for workers in arduous or dangerous employment.
Most systems provide periodic benefits for survivors of covered persons or pensioners, although some pay only lump-sum benefits. Survivor benefits are generally a percentage of either the benefit paid to the deceased at death or the benefit to which the insured would have been entitled if he or she had attained pensionable age or become disabled at that time. Survivor benefits are paid to some categories of widows under nearly all programs. The amount of a widow’s benefit usually ranges from 50 percent to 75 percent of the deceased worker’s benefit or, in some cases, 100 percent.
Sickness and Maternity
Sickness benefit programs are generally of two types: cash sickness benefits, which are paid when short-term illnesses prevent work, and health care benefits, which are provided in the form of medical, hospital, and pharmaceutical benefits. Some countries maintain a separate program for cash maternity benefits, which are paid to working mothers before and after childbirth. In most countries, however, maternity benefits are administered as part of the cash sickness program. (Benefits provided as a result of work injury or occupational disease are provided either under work injury or sickness programs. Details of the benefits are discussed under Work Injury.)
Many countries have merged the financing of sickness programs with that of other social insurance benefits and collect only a single contribution from employees and employers. More commonly, however, employees and employers con-tribute directly to a separate program that includes both health care and cash benefits for sickness and maternity. Some countries also provide a government contribution. Where medical care is available to residents, generally through some type of National Health Service, the government usually bears at least the major part of the cost from general revenues.
Generally, a person becoming ill must be gainfully employed, incapacitated for work, and not receiving regular wages or sick-leave payments from the employer to be eligible for cash sickness benefits. Most programs require claimants to meet a minimum period of contribution or to have some history of work attachment prior to the onset of illness to qualify. Some countries, however, have eliminated the qualifying period. The length of the qualifying period for cash sick-ness benefits may range from less than one month to six months or more and is ordinarily somewhat longer for cash maternity benefits.
The cash sickness benefit is usually 50 percent to 75 percent of current average earnings, frequently with supplements for dependents. Most programs, however, fix a maximum benefit amount or do so implicitly through a general earnings ceiling for contributions and benefits. Benefits may be reduced when beneficiaries are hospitalized at the expense of the social insurance system. A waiting period of two to seven days is imposed under most cash sickness programs. As a result, benefits may not be payable if an illness or injury lasts for only a few days. Similarly, in the case of a prolonged inability to work, benefits may not be payable for the first few days. Under some programs, however, benefits are retroactively paid for the waiting period when the disability continues beyond a specified time, commonly two to three weeks.
Medical services usually include at least general practitioner care, some hospitalization, and essential drugs. Services of specialists, surgery, maternity care, some dental care, a wider range of medicine, and certain appliances are commonly added. Transportation of patients and home-nursing services may be included. There are three principal methods of meeting the cost of health care: direct payment to providers by the public system or its agents, reimbursement of patients, and direct provision of medical care. These methods may be used in different combinations and may be varied for different kinds of services. Under direct payment, the social security or public medical care system pays providers directly for services. Patients usually have little or no direct financial dealings with the care provider.
Prenatal, obstetric, and postnatal care for working women is provided in most countries under the medical services program. Obstetric care is sometimes limited to the services of a midwife, although a doctor is usually available in case of complications. Care in a maternity home or hospital, as well as essential drugs, are ordinarily furnished where necessary.
Medical Care for Dependents
When medical benefits for insured workers are provided through social insurance, similar services are typically furnished to their spouses and young children (and, in some cases, other adults or young relatives living with and dependent on the insured). Maternity care is generally provided to the wife of an insured man. In some countries, however, medical services available to dependents are more limited than those provided to insured workers or heads of families. Dependents may be subject to a shorter maximum duration for hospital stays, for example, and may have to pay a larger percentage of the cost of certain services such as medicine.
The oldest type of social security—the work injury program—provides compensation for work-connected injuries and occupational illnesses. Such programs usually furnish short- and long-term benefits, depending on both the duration of the incapacity and the age of survivors. Work injury benefits nearly always include cash benefits and medical services. Most countries attempt to maintain separate work injury programs that are not linked directly with other social security measures. In some countries, however, work injury benefits are paid under special provisions of the general social security programs. Both types of programs are dealt with under Work Injury.
Types of Systems
There are two basic types of work injury systems: social insurance systems that use a public fund, and various forms of private or semiprivate arrangements required by law. In most countries, work injury programs operate through a central public fund, which may or may not be part of the general social insurance system. All employers subject to the program must pay contributions to the public carrier, which in turn pays the benefits.
Countries that rely primarily on private arrangements require employers to insure their employees against the risk of employment injury. However, in some of these countries, only private insurance is available. In the remainder, a public fund does exist, but employers are allowed the option of insuring with either a private carrier or the public fund. The premiums charged by private or mutual insurance companies for work injury protection usually vary according to the experience of work accidents in different undertakings or industries, and the cost of protection may vary widely.
In some countries, how-ever, experience rating has been eliminated, and all employers contribute to the program at one rate. In other instances, workers’ compensation laws simply impose on employers a liability to pay direct compensation to injured workers or their survivors. Employers covered under such laws may simply pay benefits from their own funds as injuries occur or may voluntarily purchase a private or mutual insurance contract to protect themselves against risk.
Work injury programs commonly cover wage and salary workers and exclude the self-employed. The programs of some of the more highly industrialized nations cover practically all employees. However, many countries either exclude all agricultural employees or cover only those who operate power-driven machinery. Some programs also exclude employees of small enterprises.
Source of Funds
Work injury benefits are financed primarily by employer contributions, reflecting the traditional assumption that employers should be liable when their employees suffer work injuries. Where certain elements of the work injury program are meshed with one or more of the other branches of the social insurance system, however, financing usually involves contributions from employees, employers, and the government. Another exception occurs in countries that provide medical treatment for work-connected illnesses under their ordinary public medical care programs.
Work Injury Benefits
Work injury programs provide cash benefits and medical benefits. Cash benefits under work injury programs may be subdivided into three types: benefits for temporary disability, those for permanent total disability, and those for permanent partial disability. No qualifying period of coverage or employment is ordinarily required for entitlement to work injury benefits. The concept of work-connected injury has gradually been liberalized in a number of countries to cover injuries occurring while commuting to and from work.
Temporary disability benefits are usually payable from the start of an incapacity caused by a work injury, though some programs require a waiting period of one to three days. Benefits normally continue for a limited period, such as 26 to 52 weeks, depending on the duration of incapacity. If incapacity lasts longer, the temporary disability benefit may be replaced by a permanent disability benefit. The second type of cash work injury benefit is pro-vided in cases of permanent total disability.
Generally, it becomes payable immediately after the temporary disability benefit ceases, based on a medical evaluation that the worker’s incapacity is both permanent and total. The permanent total disability benefit is usually payable for life, unless the worker’s condition changes. The third type of cash work injury benefit is provided when permanent partial disability results in a worker’s loss of partial working or earning capacity. It is usually a portion of the full benefit corresponding to the percentage loss of capacity.
Most work injury programs also provide benefits to survivors. These benefits are customarily payable to a widow, regardless of her age, until her death or remarriage; to a widower with a disability; and to orphans below specified age limits. If the benefit is not exhausted by the immediate survivors’ claims, dependent parents or other relatives may be eligible for small benefits. No minimum period of coverage is required.
Benefits in this category provide compensation for the loss of income resulting from involuntary unemployment. In some countries, these programs are independent of other social security measures and may be closely linked with employment services. In other countries, the unemployment programs are included with social security measures covering other short-term risks, although employment services may continue to verify unemployment and assist in a job search.
Unemployment programs, which exist mainly in industrialized countries, are compulsory and fairly broad in scope in many countries. Some countries restrict benefits to those who satisfy a means or income test. In addition to the programs offering scheduled payments, a number of countries provide lump-sum grants, payable by either a government agency or the employer; other countries provide individual severance accounts, providing total benefits equal to the value of accumulated capital in the individual account. In addition, employers in many instances are required to pay lump-sum severance indemnities to discharged workers.
About half of the compulsory unemployment programs cover the majority of employed persons, regardless of the type of industry. Coverage under the remaining programs is limited to workers in industry and commerce. A few exclude salaried employees earning more than a specified amount. Some have special provisions covering temporary and seasonal employees.
Several countries have special occupational unemployment programs, most typically for workers in the building trades, dockworkers, rail-way employees, and seafarers. Voluntary insurance systems are limited to industries in which labor unions have established unemployment funds. Membership in these funds is usually compulsory for union members in a covered industry and may be open on a voluntary basis to nonunion employees. Uninsured workers, such as recent school graduates or the self-employed, for example, may be eligible for a government-subsidized assistance benefit when they become unemployed.
Source of Funds
The methods used to finance unemployment insurance are usually based on the same contributory principles as for other branches of social insurance—contributions amounting to a fixed percentage of covered wages are paid on a scheduled basis. In many cases, the government also grants a subsidy, particularly for extended benefits. Unemployment insurance contributions are shared equally between employees and employers in many countries. Alternatively, the entire contribution may be made by the employer. However, government subsidies may be quite large, amounting to as much as two-thirds of the program’s expenditures. Means-tested unemployment assistance programs are financed entirely by governments, with no employer or employee contribution.
To be entitled to unemployment benefits, a worker must be involuntarily unemployed and have completed a minimum period of contributions or covered employment. The most common qualifying period is six months of cover-age within the year before employment ceased. In a number of industrialized countries, however, students recently out of school who are unable to find jobs may be eligible for unemployment benefits, even without a work record. This benefit provides a transition from school to work, particularly in periods of recession.
Nearly all unemployment insurance programs, as well as those providing unemployment assistance, require that applicants be capable of, and available for, work. An unemployed worker, therefore, is usually ineligible for unemployment benefits when incapacitated or otherwise unable to accept a job offer. Usually, the unemployed worker must register for work at an employment office and report regularly for as long as payments continue. In some countries, long-term unemployed workers may also be obliged to undertake employment retraining programs.
Some countries also provide the unemployed with access to educational placements. If an unemployed worker refuses a place on a retraining program or fails, without good cause, to attend an educational placement, benefits can be temporarily or permanently suspended. A system of wage classes rather than a single fixed percentage is used in some countries. The basic rate of unemployment benefits is usually between 40 percent and 75 percent of average earnings.
The general purpose of family allowance programs is to provide additional income for families with young children to meet at least part of the added costs of their support. These programs may either be integrated with other social security measures or kept entirely separate. In this report, family allowances primarily include regular cash payments to families with children.
In some countries, they also include school grants, birth grants, maternal and child health services, minimum income guarantees, and allowances for adult dependents. Most industrialized countries have family allowance programs that originated in Europe in the 19th century when some large companies began paying premiums to workers with large families. The idea spread gradually, and several European countries enacted programs during the 1920s and 1930s.
Most programs in operation today, however, have been in place since 1945.A relatively new trend in many developing countries has been the emergence of cash transfers as an instrument to alleviate poverty and invest in human capital. In this report, these benefits are classified as family allowances since they are generally paid to families with children. Usually financed from taxation, cash transfers are almost always means tested, and the receipt of benefits may be tied to a given set of behavioral conditions, such as school attendance or meeting basic health and nutritional requirements.
Types of Systems and Coverage
Family allowance programs are generally of three types: universal, employment-related, and social assistance. The first category, in principle, provides allowances to all resident families with a specified number of children. The second category provides allowances to all wage and salary workers and, in some cases, to self-employed and nonemployed persons. Most employment-related programs continue to pay family allowances to insured persons with dependent children in their care when they retire or are temporarily off the job and receiving sickness, unemployment, work injury, disability, or other benefits. Employment-related family programs also pay allowances to widows of social security beneficiaries. The third category provides allowances to persons or households whose resources fall below a calculated standard, usually based on subsistence needs.
Source of Funds
The differences in family allowance programs are reflected in the methods used for financing. In universal and social assistance systems, the entire cost is usually covered by general revenue, although some programs may be financed with earmarked taxes or solidarity transfers from contributory programs. By contrast, countries linking eligibility with employment meet the cost of allowances entirely or in considerable part from employer contributions, usually at a uniform percentage-of-payroll rate. If employer contributions do not cover the entire cost, the remainder is usually met from a government subsidy. Few countries require an employee contribution toward family allowances, although some require self-employed persons to contribute.
Eligibility is commonly related to the size of the family and, in some cases, to family income. Many countries pay allowances beginning with the first child. In addition, some countries pay an allowance for a nonemployed wife or other adult dependent, even if there are no children.In some countries, families with only one child are ineligible. Age requirements vary but are usually tied to the last year of school or the minimum working age, which are often the same and fall somewhere between ages 14 and 18. Under most programs, the continuation of schooling, apprenticeship, or vocational training qualifies a child for an extension of the age limit. In the case of children with disabilities, many countries extend the age limit beyond that for continued education or pay allowances indefinitely.
Whether a program pays a uniform rate for all children or an increasing or decreasing amount for each additional child may reflect the history or the intent of the program. The allowance structure may vary, for example, depending on whether the primary intent is to provide assistance, stimulate population growth, or promote human capital. The allowance is often a uniform amount for every child, regardless of the number of children in a family. In other countries, the allowance in most of the other countries increases for each additional child; the payment for a fifth child, for example, may be considerably larger than that for the first or second child. In a few countries, the allowance for each child diminishes or ceases with the addition of children beyond a certain number. In some countries, family allowances (and tax exemptions for dependent family members) have been replaced or supplemented by credits or other forms of a negative income tax.
2 research design
2.1 Research contents and ideas
Taking Hubei Province as an example, this paper surveys and studies the current situation of the employment, living and public participation of floating population and local residents. Specifically, this study will mainly discuss the following four aspects：
(1) study on the current situation of public participation in floating population. Intend to start from political participation, public cultural activities and participation of community organizations to participate in the three areas, using correlation analysis, mean comparison and statistical analysis method, comparative analysis of whether there are differences between migrants and local residents in different aspects of participation, participation and participation in the final effect, there are significant differences in what aspects.
(2) study on the influencing factors of public participation of floating population. Based on the analysis of the current situation, this paper will further explore what factors cause the difference of the floating population and the local residents’ willingness to participate, participate in the behavior, the effect of participation. Mainly uses the regression analysis method, from the household registration system, individual modernity and social capital three aspects to discuss the influence factor of the public participation. Based on the analysis of the whole sample, the object is divided into the sample of the floating population and the local population, and the function of the independent variables is defined. In addition, the age, sex, and marital status of the individual level, the migration time and distance of the floating population as the control variables.
(3) to enhance and promote the public participation of the floating population of the countermeasures and suggestions. Based on the present situation of the public participation of the floating population and its influencing factors, the importance and urgency of enhancing the public participation of the floating population are demonstrated, and the related thoughts on improving the status of participation and promoting the integration of the city are put forward.
2.2 Definition of concept
2.2.1 floating population
As the survey sites of this study concentrated in the Hubei region, according to the “Regulations” service and management of floating population in Hubei Province second paragraph second, the floating population refers to leave the residence located at the county level administrative regions to other persons living in the administrative area, city municipal district between the flow of personnel except. According to the respondents hukou to define accounts in other provinces in the province, but not in the city, in the city, but not in the county of the respondents as the floating population, flowing in the distance, including inter provincial movement across the province, city and county of the city in cross flow flow population; in the flow area, both flowing between urban and rural areas, including the city of flow between。
The public includes two meanings: one refers to the farmers to accept all kinds of factor of modern city civilization before changing occupation and identity; on the other hand refers to the change, develop the corresponding ability to use their own civil rights, fully integrated into the city. The public is referred to as a “peasant occupation” (Farmer or Cultivator) and as a kind of social identity of the “farmers” (Peasant) (citizen) to the public in the process of transformation, develop the corresponding ability, basic qualifications, and obtain the public learning to adapt to the city and have a City public basic the quality of the process (Zheng Hangsheng, 2005).
Therefore, urbanization is a process, is a kind of result, this study will focus on the public as a process of transformation, the floating population is city and modern transformation in space, identity, life style, behavior, relationship network, subjective identity etc.。
2.3 Analysis framework and research hypothesis
2.3.1 analytical framework
Public participation is the symbol of the democratic society development level, is the embodiment of civil rights, is an important carrier of floating population into the city society, but in our country the top-down mobilization masses to participate in the historical background, this paper argues that the action field of public participation is not only relative to the city and countryside, with respect to the country society.
Therefore, this paper is mainly based on the perspective of relationship between state and society, participate in status and influence in every field of comparative study of factors of floating population and local residents, discuss the current research that migrant workers overall participation rate is low, weak in the sense of this conclusion, just because of its lack of capital or the modern two structure in urban and rural areas under the opportunity to participate in the limit, so as to form a special encounter of the floating population, or the whole process of social development dilemma.
The relationship between the state and society discusses originated from western philosophy, Western liberal thinkers such as Rock, Montesquieu, Adam, Tocqueville, Hagel Ferguson will be regarded as the western civil society and the state is relatively independent of the state, and some areas, put forward the “society first in the state” and “society to state” and “state higher than the society” or “two balances” relationship model (Deng Zhenglai, 2006).
Unlike the liberal theory theorist, Marx put forward to the other side of the issue, that the “civil society” is the foundation of the bourgeois regime, especially the western bourgeois nation since the establishment of the state functions will continue to penetrate all areas of society and expansion, as in the process of western welfare state construction, the national interests of the whole society to the representative of the identity of the macro-control, the national income intervention in economic life.
Therefore, the Marx doctrine will attempt to oppose state and the “civil society” to separate, that “civil society” is just a kind of indirect instruments of the ruling class driving the ruling power, “civil society” is also part of the country (Tang Shiqi, 1996). Development of integrated modern western countries and newly industrialized countries can be seen in the modern society, because of the role of the state has penetrated into all areas of society, civil society is very difficult to separate with the country as an independent, but it still represents those who should not have or not directly or by the state wide field the intervention is a kind of indirect, social coordination and control means to state power.
Throughout our history, in the Confucian “self-cultivation, regulating the family, country and the world influence of the political ethics, the individual is regarded as a part of the family into society, and behavior standards and national family norms and highly consistent, making China’s traditional social order pattern was present on business, personal socialization is the state and society. The planned economy period of the planned economy system, and with the support of the rural communes and city units of this organization form, the relationship between state and society during this period showing a “national universal model” and “general social model” (Sun Liping, 2004), to achieve a comprehensive control of social state.
The social order of this period is totally dependent on the state’s control, social autonomy and self organizing ability is poor, intermediary organizations and the middle class is extremely underdeveloped (Sun Liping, 1994). During the period of market economy, the country began to decentralization, the vitality of the market and society is gradually activated, all kinds of folk organizations, associations and organizations continue to grow, with the national political and administrative mass organizations, such as trade unions, women’s Federation began the transformation of functions, communities and villages have begun to realize the grassroots democratic self-government.
But overall, the relative countries, the development of social public field is still very slow, only in the national social organization authorization and recognition, in order to carry out the work within the scope of the state, far from achieving equality interaction and communication, is still “strong state and weak society” pattern (Xu Yuanyuan and Yang Ming, 2015). In a strong state and weak social structure, this study suggests that both the floating population or city residents, there are some shortages of public participation, but also because of the floating population in urban and rural areas of two yuan structure, their participation behavior and further by the hard constraints of the household registration system。
2.3.2 Theoretical basis
184.108.40.206 Institutional theory
According to the theory of institutional theory, the social action of individuals is largely the result of the system itself, but not the result of the individual’s subjective choice. Public participation, it is a two-way interactive process, on the one hand, citizens should have the interest and ability to participate in public affairs, on the other hand, the system of background effects in what people participate and how to participate in (Yang Min, 2005).
Two structure in urban and rural areas has been the main features of macro structure system of our country, on the basis of the household registration system, not only the formation of farmers and citizens in two kinds of identity, also formed a way of city and rural two different employment system, education system, social welfare system and resource allocation, thus causing farmers and citizens in two different rights and treatment system. Although the reform and opening up gradually to break the barriers between urban and rural areas, but the system path dependence effect makes the most of the city dwellers think that migrants enjoy equal public services and civil rights means for their own interests to share, the floating population in the city’s public participation especially political participation is still subject to institutional constraints.
220.127.116.11 Social capital theory
Putnam first discusses the relationship between social capital and government performance, the democratic politics of the three, and the concept of “social capital” made a clear definition, that social capital refers to the characteristics of social organization, such as trust, norms and networks (Putnam, 1993). He further pointed out that social trust from citizens to participate in the network and norms of these two interrelated aspects, and social trust in turn is regarded as an important factor in promoting political participation and government performance, which is conducive to the operation of democratic politics (Putnam, 2007).
Social capital is an important variable to explain the citizen’s political participation and political trust. Fennema & Tillie (2001) and Jacobs & Tillie (2004) the relationship between social capital and political participation of immigrants are studied at the individual level and international level, found that immigrants in the host country’s social capital (joined the National Association and inter ethnic associations, trade unions and volunteer organizations) there is a significant positive relationship between formal or informal political participation. The resources embedded in these social networks provide citizens with emotional, material and information support (Lin, 1999), which has a positive role in promoting the participation of citizens.
18.104.22.168 Modernization theory
The theory of modernization is an important theory in contemporary academic circles, is the core concept of “traditional” and “modern”, Deal Cam’s “mechanical solidarity” and “organic unity”, Webb’s “value rationality” and “instrumental rationality” to reflect the social changes of the concept can be regarded as the rudiment of modernization theory. Modernization is a process from “traditional” to “modern”, that is, from the low degree of differentiation, strong homogeneity of the community to a highly differentiated, high degree of specialization, strong heterogeneity of the social transformation.
In the modern theory of “tradition and modern” dichotomy based, into the migrant workers as the main body of the floating population is living in the city society before its rural social different social space, has a psychological advantage in the city cultural view of the potential impact of the rural society, China is imagined the so-called “local society” (Fei Xiaotong, 1998), and from the local society of migrant workers has been labeled “local” label, in contrast to “modernity”. Citizens have a strong interest in the political life, and have a strong sense of participation in public affairs are the characteristics of the modern personality and behavior, is the characterization of the degree of social development. In the modern industrialized society, this kind of modernity through the cultural capital (certificate of occupation behavior, language style, taste and life style, values and other forms, as well as diploma, performance) forms (Bourdieu, 1984).
2.3.3 research hypothesis
Based on the above theoretical analysis and related research conclusions, this paper puts forward the following research hypothesis:
Based on a hypothesis: “the relationship between state and society” perspective, the floating population and local residents in the city as under strong state and weak social structure of citizens in strong state and weak social situation, floating population and city residents participation in various fields for the inadequacy of the low. On their participation expectations. But for the floating population, they are also two structure in urban and rural areas under the background, the participation of the household registration system further by the rigid constraints, and the floating population in the subjective involuntary exposure to their participation in the main, to a certain extent, weakening of the floating population in confidence and in their own expectations the participation result.
Corollary 1: in the willingness to participate, the floating population and local residents are more positive, showing a higher convergence, there is no significant difference between the two.
Corollary 2: participation, floating population and local residents political participation, public participation and community organizations to participate in cultural activities are not high, but under the system hard constraints of political participation, the participation rate of floating population was significantly lower than that of local residents, and in public cultural activities and the participation of social organizations. There is no significant difference between the two.
Corollary 3: in effect, the floating population and local residents in a certain extent to their participation in the lack of positive cognition, but due to the constraints of the household registration system and its own resources, capacity, position limit, floating population participation effect is relatively more weak.
Hypothesis two: on the basis of modern theory and social capital theory, the social capital of the floating population and its own characteristics of modernity will have a significant impact on the participation behavior. Specifically, there may be differences in the floating population and people’s political participation, the more social capital of the floating population, the higher degree of political participation; Party membership, higher education level and income level, occupation qualification certificate obtained reflects the modernity feature of the factors which can promote the political participation of the floating population.
Hypothesis three: studies have shown that age, political status, education level, socio-economic status, social capital and other factors of the individual will be on the political participation self-efficacy influence (Hu Ronghe and Shen Shan, 2015). According to the existing research results, this paper argues that although the household registration system of the floating population participation opportunities, but the social capital and the social economic status of floating population can increase the participation ability and resources to a certain extent, effectively enhance the effectiveness of its participation, improve the participation efficacy. Specifically, the greater the social capital stock of the floating population, the higher the sense of participation, the status of Party members, higher education, income levels will increase the flow of population to participate in the sense of efficacy.
2.4 research methods
This article mainly uses the quantitative analysis method to carry on the research, the survey object includes the floating population and the city local inhabitant. The survey method by quota sampling, the questionnaire data collected from the survey, this paper uses the SPSS20.0 software, using frequency analysis, correlation analysis of the floating population and local residents willingness to participate, participation and participation effect description analysis and comparative analysis; on the basis of present situation analysis, a regression model is established to investigate what factors make the difference in the objective and subjective participation participation behavior self-efficacy of the floating population and the public.
4. The data sources and Sample characteristics
4.1 The data sources
The data used in this study were conducted in Hubei province from October to November 2015 by the humanities and social sciences of Huazhong Agricultural University using a non-probability sampling technique (quota) was used in data collection with respect to the occupation characteristics of the floating population, in Hanchuan and Ezhou 10 companies including 3 manufacturing enterprise (1 state-owned enterprises, 1 private enterprises and 1 foreign-funded enterprises), 2 building decoration industry enterprises (1 national enterprises, 1 collective or private enterprises), 2 building decoration industry enterprises (1 state enterprises, 1 collective or private enterprises),1 logistics and transportation enterprises,1 wholesale and retail enterprises,1 catering accommodation service enterprises,1 residents service, repair service enterprises,1 entertainment services companies, and 6 enterprises in Wuhan, including 2 processing and manufacturing enterprises, 2 construction and decoration companies, 1 catering accommodation service companies, 1 residents service, repair service companies, from all of the above companies 15 urban resident and 15 migrant workers were taken from each enterprise as the research objects, If the enterprise staff size is less than 30 people that means all the employees will be investigated within the enterprise; If the number foreign workers of enterprises in the field is less than 15 people, the investigation will be carried on all the employees in the enterprise, The number of local employees in the enterprise is still maintained at 15. In Hanchuan, Ezhou, Wuhan, the number of questionnaires were 214, 248, 136 respectively, a total of 598 questionnaires, 425 valid questionnaires, the effective recovery ratio of 71.1%, including the floating population 129 people, accounting for 30.35% of the total effective sample.
4.2 Sample characteristics
The basic characteristics of the survey sample including gender, age, marital status, education, body health, hukou type and current income (see table 3-1) In the gender distribution, the proportion of men to women in the overall sample is balanced, accounting for 55.3%, 44.7%, respectively, in the rural migrant workers, the proportion of males (69.8%) is higher than that of women.
Regarding the age structure because the survey was conducted mainly in enterprises, The subjects were mainly young and middle-aged, 84.3% of the sample was under 45 years of age, The floating population is younger, More than half (51.6%) of the rural migrant workers is under the age of 30.in the marital status, Approximately (75.8%) of the sample was married, but the proportion of unmarried people in the rural migrant workers (32.8%) was higher than that of the whole sample (24.2%). In the educational degree, junior middle school and senior high school (secondary school, technical school, college and above), the proportion is more balanced, respectively 30%, 34.3%, 35.7%, in the rural migrant workers the corresponding degree of educational were 26.9%, 35%, 38.1%.
Regarding the professional qualification certificate, it was found that the ratio of having or not having a professional qualification certificate is approximately equal, accounting for 49.9% and 51.1% respectively, but when we compared between urban and rural in who have the certificate urban workers were more than rural migrant workers. dealing with the type of the hukou, the respondents mostly agricultural hukou (40.8%), followed by nonagricultural hukou(36.3%) and resident hukou (23%); rural migrant workers samples, Agricultural hukou (67.4%), nonagricultural hukou accounted for only 20.2%, obviously, rural migrant workers are still the main component of the floating population.
The data show that the majority of rural migrant and urban workers employed in the non-state sector but the rural migrant workers more than urban workers approximately (92.2% rural migrant workers and 82.8% urban workers). The results showed that the urban workers have a self-owned housing more than rural migrant workers.
Table 1 Basic characteristics of the sample
|Full sample||Rural migrant workers||Urban workers|
|Age||30 years old and below||181||43.0%||51.6%||39.2%|
|46-60years and above||66||15.7%||15.6%||15.7%|
|Married, divorced or widowed||317||75.8%||67.2%||79.5%|
|Education||Junior high school||127||30.0%||37.2%||26.9%|
|High school, technical school||145||34.3%||32.6%||35.0%|
|Vocational and Technical||83||19.6%||18.6%||20.1%|
|Bachelor degree or above||68||16.1%||11.6%||18.0%|
|Have professional qualification certificate||Yes||208||49.9%||42.9%||52.9%|
|Employment sector||State sector||61||14.4%||7.8%||17.2%|
|The nature of the housing||Self-owned housing||302||71.9%||42.2%||84.9%|
3.3.2 independent variables
Influence factors were analysis of the floating population and local residents willingness to participate, participation and participation effect, this study variables into three levels, namely, the individual capital account variable variable, the variable of social capital, specifically, whether the account variable contains two aspects of the floating population and the nature of the account; individual capital variables include the modernity characteristics of human capital, life style and values, on the cultural level, political affiliation, income level, whether to have the occupation qualification certificate, whether or not to sign the labor contract, the housing property, and individual subjective political interest measure and employers; social capital variables related to two aspects of society the network and the sense of social trust, measured by community organizations and the number of individuals participating in individual universal trust.
In addition, this paper also takes the gender, age, marital status of the individual as well as the flow distance of the floating population and the working time of the migrant population as the control variables. The meaning of the specific variable and the value of the table 3-2.
Willingness to participate and participation in this study is a dichotomous variable, this paper builds binary logistic regression model to analyze the influencing factors of participatory efficacy in this study is a fixed distance and variable, this paper establishes multiple linear regression model to analyze the influencing factors. More clearly the of all kinds of influencing factors due to the effect of variables, the household register variables, variables of individual capital, social capital variables gradually incorporated into the equation, at the same time, because of involving large numbers of variables, this paper in into two kinds of regression model variables have different emphases.
表 3-2 变量类型及含义
Table3-2 The type and meaning of each Variable
|variaable类型||Variable name||Variable assignment and meaning|
|控制变量||性别||Dummy variable ：男=0；女=1|
|年龄||Dummy variable ：30岁以下=0；31-45岁=2；46-60岁=3|
|婚姻状况||Dummy variable ：未婚=0；已婚、离婚、丧偶=1|
|working hours||Dummy variable ： Unit for years|
|Flow distance||Dummy variable ： Inter provincial=0；Cross city flow动=1；市内跨县流动=2|
|户口变量||floatingpopulation||Dummy variable ：流动人口=0；本地居民=1|
|Number of organizations to join||定距变量：单位为个|
|Universal trust||虚拟变量： Don’t agree with most people in society. =0；
Agree with most people in society =1
|因变量||Willingness to participate||虚拟变量： Do not participate in =0Willingness to participate in =1 (including political participation与社区公共文化活动参与两个领域）|
|Participation behavior||虚拟变量： Not attended =0； Attended =1（ Including political participation 、
Public cultural activities participation, community participation in three areas
|参与效能感||Fixed distance variables: the arithmetic mean of each measurement|
Table 2 show the participation of rural migrants and urban workers in the five official social insurance schemes and their participation in housing providing fund was also included in this analysis. The participation of rural migrants across each of these schemes ranging between 37.3% and 49.2% but urban between 62.75% and 73.3%, the participation of rural migrants workers and urban workers in housing providing fund is 26.6% and 20.5% respectively, therefore rural migrants workers participation in all schemes is less than urban workers participation in Hubei province but it was noticed that rural migrants participation in housing providing fund is more than urban. The participation of migrants in at least one scheme is 57.9% while urban 79.8 %, here also rural migrants is less than urban.
Table2: Percentage composition of participation in social insurance scheme between rural migrant workers and urban workers
|Social insurance||Rural migrant workers||Urban workers|
|N percentage||N percentage|
|Basic old-age insurance||58 46.0%||215 73.3%|
|Medical insurance||58 46.4%||195 73.3%|
|Work- related injury insurance||62 49.2%||208 71.2%|
|Maternity insurance||47 37.3%||183 62.7%|
|Unemployment insurance||50 39.3%||187 64.0%|
|Housing providing fund||26 20.6%||100 34.2%|
|At least one scheme||73 57.9%||233 79.8%|
Table 3 evaluate the percentage of rural migrants who had labour contracts is 66.9% in contrast to 85.5% of urban had labour contracts. This table explain that urban workers have more labour contracts than rural migrant workers
Table 3 Labour contract participations between rural migrant workers and urban workers
|Labor contract||Rural migrant workers||Urban workers|
Table 4 Differentiate between rural migrant workers and urban workers in their participation in at least one social insurance scheme according to their major characteristics, Firstly female workers have more participation in social insurance than male workers among both urban and rural workers, female and male urban workers are more participated than rural female and male workers.
Regarding the age it was noticed that participation in social insurance of rural migrant workers was more distributed among the ages of under 30 with 64.1%, and less distributed among 46-60 and above with 30.0%. In contrast the participation of urban workers was less distributed among the age of under 30 years old with 71.2% but the participation was more distributed among 46-60 and above with 87.0%, concerning educational level it was obtained that there is direct correlation between the social insurance participation and the educational level among both urban workers and rural migrant workers.
Rural migrant and urban workers having Professional qualification certificate more likely to participate in social insurance than those who have not. In the evaluation of all hukou types urban workers had more participation in social insurance than rural workers but both urban and rural workers who had non-agricultural or resident account were more participated than who had agricultural account. Rural migrant and urban workers employed in the state sector and had significantly higher participation rates than their counterparts in the non-state sector.
Rural migrant workers and urban workers having house more likely to participate in social insurance than rent housing while urban workers more participation than rural migrant workers. Comparing the labour contract and participation both urban and rural workers who had labour contract were more participated, however urban workers had more labour contracts and more participation than rural migrant workers.
Table 4 Percentage composition of participation in at least one social insurance scheme
|Rural migrant workers||Urban workers|
|46-60 and ≥||20||30.0%||70.0%||46||87.0%||13.0%|
|Marital status||Married, divorced or widowed||82||54.9%||45.1%||60||82.5%||17.5%|
|Junior high school||126||48||29.2%||70.8%||290||76||61.8%||38.2%|
|Education||High school, technical school||41||68.3%||31.7%||103||78.6%||21.4%|
|Vocational and Technical||22||81.8%||18.2%||58||91.4%||8.6%|
|Bachelor degree or above||15||86.7%||13.3%||53||94.3%||5.7%|
|Professional qualification certificate||Yes||123||54||70.4%||29.6%||287||134||87.6%||12.4%|
|Employment sector||State sector||126||10||80.0%||20.0%||292||51||98.0%||02.0%|
|Non state sector||116||56.0%||44.0%||241||75.9%||24.1%|
|The nature of the housing||Self-owned housing||125||51||70.6%||29.4%||289||246||81.3%||18.7%|
Table 5 Regarding the gender it was found that female of both rural and urban workers have more labour contracts than male Dealing with age it was obtained that rural migrant workers labour contracts distribution had opposite relation with age, therefore labour contracts around the age of less than 30 were more than the labour contracts around the ages of 31-60years old, while urban were not depend on age, but the higher value of labour contracts was around the age of 31-45.
Concerning the education urban and rural migrant workers had a positive correlation between the education level and labour contract. Rural migrant and urban workers having Professional qualification certificate more likely to participate in labour contract than not having In term of hukou urban workers who have resident and agricultural Hukou had more labour contracts than rural workers but urban who have non-agricultural Hukou exceed rural by few units.
Rural migrant and urban workers employed in the state sector and had significantly higher participation rates in labour contract than their counterparts in the non-state sector. Rural migrant workers and urban workers having house more likely to participate in labour contract than rent housing while urban workers more participation than rural migrant workers.
Table 5 Labor contract participations (%)
|Migrant workers||Urban resident|
|46-60 and ≥||20||25.0%||75.0%||44||75.0%||25.0%|
|Married, divorced or widowed||79||57.0%||43.0%||226||85.0%||15.0%|
|Education||Junior high school||124||46||41.3%||58.7%||287||77||68.8%||31.2%|
|High school, technical school||40||70.0%||30.0%||99||85.9%||14.1%|
|Vocational and Technical||23||91.3%||8.7%||59||94.9%||5.1%|
|Bachelor degree or above||15||100.0%||0.0%||52||98.1%||1.9%|
|professional qualification certificate||Yes||122||53||73.6%||26.4%||284||150||89.3%||10.7%|
|Employment sector||State sector||124||10||70.0%||30.0%||289||50||96.0%||04.0v|
|Non state sector||114||66.7%||33.3%||239||83.3%||16.7%|
|The nature of the housing||Self-owned housing||123||52||73.1%||26.9%||285||242||86.4%||13.6%|
Table 6 Comparing social insurance participation and possession of labour contract among rural migrants and urban workers it was concluded that migrants and urban workers having labour contract were more likely to participate in pension insurance however migrants who had labour contracts decrease urban by 4.6 points, and urban workers who had not participated in pension insurance had more labour contracts than migrants with the same conditions.
Regarding the medical insurance Urban and rural workers having more labour contracts were more likely to participate in medical insurance. Urban workers who had labour contracts and participated in medical insurance were more than migrant workers. Relating to occupational injury, urban and rural workers who had labour contracts were more likely to contribute in occupational injury insurance than who had not labour contracts, urban workers who had labour contracts and contributed in injury insurance were more than rural workers with the same condition.
Handling with maternity insurance, urban and rural workers who had labour contracts were more likely to participate in maternity insurance. Urban with labour contracts together with maternity insurance were exceed rural workers with the same conditions by 5.9 units. Concerning unemployment insurance urban workers having labour contract and unemployment insurance were more than rural workers having the same circumstances.
Dealing with the housing fund urban workers and rural migrants workers who have labour contracts were more likely to participate in housing fund than who had not labour contracts, but urban workers also in this case were more than rural migrant’s workers. When at least one scheme of social insurance was analyzed the result proved that urban workers have more labour contract will more likely to participate in at least one insurance scheme, and urban workers and rural migrants workers having more labour contracts were more likely to participate in at least one scheme of social insurance. This study proved that having labour contract is a determinant factor of increasing the participation across all of the above insurance schemes.
Table 6 Percentage composition of participation of labor contract and social insurance
|Rural migrant workers Urban workers|
|Total Number||Yes No||Total Number||Yes No|
|Basic old-age insurance||Yes||122 56||91.1% 8.9%||287 211||95.7% 4.3%|
|No||66||45.5% 54.5%||76||57.9% 42.1%|
|Medical||Yes||122 57||89.5% 10.5%||287 192||98.4 % 1.6%|
|No||65||46.2% 53.8%||95||60.0% 40.0%|
|Work- related injury||Yes||122 60||86.7% 13.3%||287 204||94.1% 5.9%|
|No||62||46.8% 53.2%||83||65.1% 34.9%|
|Maternity||Yes||122 46||93.5% 6.5%||287 180||99.4% 0.6%|
|No||76||50.0% 50.0%||107||62.6% 37.4%|
|Unemployment||Yes||122 49||93.9% 6.1%||287 184||99.5% 0.5%|
|No||73||47.9% 52.1%||103||61.2% 38.8%|
|Housing providing fund||Yes||122 25||92.0% 8.0%||287 98||99.0% 1.0%|
|No||97||59.8% 40.2%||189||78.8 % 21.2%|
|At Least One
|Yes||122 70||84.3% 15.7%||287 229||92.1% 7.9%|
|No||52||42.3% 57.7%||287 58||60.3 % 39.7%|
Table7 Based on the descriptive analysis there is a significant difference between rural migrant workers and urban workers in signing labour contracts. A binary logistic regression model was used to explain the differences between them and to test hypothesis 1 in the feasibility of saying that urban workers have more labour contracts than rural migrant workers.
According to one’s personal characteristics, hukou nature and one’s human capital and demographic characteristics, there are differences in the participation in social insurance, The dependent variable is set equal to 1 if a respondent has a labour contract. The independent variables in Model 1 include age, gender, marital status, rural migrant and urban workers and hukou. Model 2 contain the same variables in model1 plus other variables that include education, Employment sector, professional qualification certificate and the nature of the housing.
Model 1 demonstrate that gender has a significant effect on having a labour contract, being female significantly and positively influence whether a worker has signed a labour contract with females being 1.66 times more likely than males to have labour contract, while age have a significant negative effect on having a labour contract, Marital status have a significant effect and unmarried workers were more likely to sign labour contract this may be attributed to lower responsibility and the employers requirements.
Model 1 also shows that resident hukou holders are statistically more likely to have labour contract, and resident hukou holders being 4.02times more likely than non-agricultural hukou holders to have labour contract. Therefore being female and having resident hukou is statistically significant in this study. Rural migrant workers have a significant effect and rural migrant workers were less likely to sign labour contracts than urban by 0.50.
In Model 2 Age on the age group of (46-60years) and being female have a significant effect in both models, while marital status holding resident hukou become insignificant in model2 rural migrant worker has a significantly negative effect on having a labour contract and they were less likely to sign contract than urban worker by 0.49. The individual capital variables was added to Model 2, education has a significantly and positive influence on whether a person has signed a labour contract (between 10.53 for junior high school and 3.5 times College and above), employment sector has insignificant effect and workers who work in state sector and have labour contracts exceed who work in non-state sector by 1.029, whereas those who have professional certificate are approximately 1.679 times have signed labour contract than those who have not.
The ones who possess housing are 1.427times less likely to have a labour contract than persons who rented housing. But after controlling for gender age and other significant variables, between migrants and local residents will not exist significant differences. The model of NagelkerkeR2 was 0.227, compared with model1 (0.98) increased by 1.
Table 7 Results for binary logistic regression models on labour contract
|Variable||Model 1||Model 2|
|B||Odds ratio||B||Odds ratio|
|Gander （ref: Male ）|
|Age（ref: 30years and below）|
|Marital status(ref: Married, divorced or widowed）|
|Rural migrant and urban workers(ref: Urban workers)|
|rural migrant workers -0.689**||0.502||-0.702**||0.495|
|nature of hukou（ref: non agricultural）|
|Individual capital variable|
|Education (ref: junior high school and below)|
|High school, secondary school, technical school||2.354***||10.531|
|College and above||1.253**||3.500|
|Employment sector(ref: non-state
|professional qualification certificate(ref: no)|
|The nature of the housing (rent housing)|
|Social capital variables|
|Cox & Snell R square -2||0.144||0.205|
Source: Authors’ calculation.
Notes: 1. Robust standard errors are in brackets; 2. ***p<0.001, **p<0.01, *p<0.05.
Table 8 A binary logistic regression model was used to examine hypotheses two, three and four in the likelihood of participating in social insurance based on one’s hukou type, one’s human capital and demographic and personal characteristics and whether one has secured a labour contract, The dependent variable is set equal to 1 when the respondent participates in at least one social insurance scheme (Models 1–4) otherwise it equals zero.
Models 1–4 evaluate the factors that determine the participation in social insurance. In Model 1 the odds ratio indicates that, while controlling for other independent variables, Male have less participation than female and age has a negative impact on social insurance (between 0.96 and 0.72 for age groups of (31-45years) and （46-60years ）respectively). Being unmarried have a significantly negative effect on social insurance participation with unmarried being less than married on social insurance participation by 0.92. Rural migrant workers have a significant effect on social insurance participation and they were less likely to participate in social insurance than urban workers by 0.61. Holding a resident hukou have a significant effect on social insurance participation with a resident hukou holder being 3.91.
Model 2 has the same general characteristics of Model one except for age has a negative effect on accessing social insurance. Rural migrant workers become insignificant variable and they decrease urban workers participation in social insurance by 0.75. Having a resident hukou have a significant effect on social insurance participation and it increase the non-agricultural hukou holder on social insurance participation by 1.99.
Education has a significant effect on the probability of having social insurance among workers who attend High school, secondary school and technical school and they have higher participation than those who attend junior high school and below by 5.91. Working in state sector has a significant effect on social insurance and the ones who work on the state sector increase who do not by 4.53.
Professional qualification has a significant effect on social insurance participation and persons with professional qualification being 1.91 times higher than who have not. The ones who possess housing are 1.77 times more likely to participate in social insurance than persons who rented housing,
In Model 3 having resident hukou became insignificant and it has the same general features of Model2 adding the rural migrant workers which unlike Model1 and 2 became positive and the resident hukou holder which became insignificant in this model. the labour contract which is significant and it was found that urban who have labour contract exceed those who have not of urban and rural with or without labour contract in the probability of accessing social insurance by 4.23 times.
Model 4 has the same general features of Model3 except for marital status which became significant and has a negative effect on whether one had participated in social insurance and also rural migrant workers became insignificant variable and had a negative effect on social insurance participation. In addition labour contract which has significant effect and proves hypothesis four which argue that floating and non-floating population who have labour contracts have more participation in social insurance than both floating and non-floating who have not (by odd ratio 5.82 ).
Table 11: Results for binary logistic regression models on participationin at least one social insurance scheme
|Variable||Model 1||Model 2||Model 3||Model 4|
|B||Odd ratio||B||Odd ratio||B||Odd ratio||B||Odd ratio|
|Gander （ref: Male ）|
|Age（ref: 30years and below）|
|Marital status(ref: Married, divorced or widowed）|
|Rural and urban worker(ref: urban workers)|
|Rural migrant workers||-0.487*||0.614||-0.286||0.751||0.800*||2.225||-0.317||0.728|
|nature of hukou （ref: non agricultural）|
|Individual capital variable|
|Education (ref: junior high school and below)|
|High school, secondary school, technical school||1.778***||5.918||1.634***||5.122||1.400***||4.056|
|College and above||0.618||1.856||0.528||1.695||0.407||1.503|
|Employment sector (ref: non-state sector)|
|professional qualification certificate(ref: no)|
|The nature of the housing (rent)|
|Social capital variables|
|Rural and Urban*labor contract|
|Urban have labor contract||1.453***||4.277||-0.219||0.803|
|Cox & Snell R square||0.146||0.246||0.268||0.293|
Source: Authors’ calculation.
Notes: 1. Robust standard errors are in brackets; 2. ***p<0.001, **p<0.01, *p<0.05.
To summarize the findings, we find support for all four hypotheses. The results for models 1 and 2 support H1 and indicate that rural migrant workers are about 0.50 times less likely to sign a labour contract than urban workers.
The results in models 3 and 4 support H2 and indicate that urban migrants are close to 1.5 times more likely to participate in at least one social insurance than rural migrants. In models 4 through 7, having a labour contract is a significant predictor of access to social insurance, with the odds ratio between 9.0 and 11.9. In model 4, support for H3 is demonstrated by the relative impact of having a labour contract on social insurance participation, which far outweighs the impact of hukou status, with odds ratios of 11.9 and 1.3 respectively.
These results are consistent with the growing importance of signing a labour contract and point to the increasing salience of labour contracts, vis-à-vis hukou status and other factors in facilitating migrants’ access to social insurance. Model 7 indicates support for H4, with the significant interaction term demonstrating that urban migrants with a labour contract are statistically more likely to have social insurance than any other cohort, namely, urban migrants without a labour contract, or rural migrants either with or without a contract.
Concerning survey data gathered in Hubei province from October to November 2015, this study utilizes an extended analytical structure to analyze the complicated interplay between having a labour contract and participation in social insurance schemes for both rural migrant workers and urban workers. Results from a series of logistic regression models test respectively the four hypotheses.
The first is that urban workers will more probably to sign labour contracts than rural migrant workers.
The second is that urban workers will more probably participate in social insurance than the rural migrant. Urban workers having labour contracts have a greater opportunity to participate in social insurance than rural migrant workers or urban workers without a labour contract.
The fourth is that urban workers or rural migrant workers having labour contracts have a greater opportunity to participate in social insurance than rural migrant workers or urban workers without a labour contract.
Following the implementation of the 2010 Social Insurance Law, which was enacted on 1 July 2011, the Beijing Government stated that by the end of the Twelfth Five-year Plan (2011–15), urban workers’ participation rates in social insurance should reach 98 percent. Similar local policy targets have been enacted elsewhere.
Nationally, all senior citizens should receive the pension insurance by 2015. An improved social security system seems to be on its way. However, if participation disparities remain between contracted and unconstructed workers, rural-to-urban migrants will still be disadvantaged by the uneven implementation of labour contracts and social insurance schemes in different sectors.
For the sake of public policy, a nationally unified social insurance system should be developed to allow migrants free transfer of their accounts between cities as well as between cities and the countryside. The findings of this study are consistent with recent research which suggests that hukou status is becoming less important in explaining the social exclusion of rural–urban migrants and that a new research direction, ‘beyond hukou’ should be proceeded .
The decreasing importance of hukou status across the models explains its declining power in determining some aspects of migrant’s socioeconomic well-being. The hukou system certainly needs further reform, which the Chinese Government has already initiated to tackle. Other important policy implications originate from the results in this study. Among these, in order to improve social insurance coverage within the current legal framework, the officials must make it mandatory for employers to support migrant workers with labour contracts — regardless of their hukou, age, gender or other human capital or personal characteristics.
Similarly, rural migrant workers, in particular, should be provided with increased information flows about labour contracts through education campaigns and dissemination through social networks. Although, the results of this study by no means reveal that improving the coverage of labour contracts is the only critical factor. Personal and human capital characteristics may still operate in other ways, as captured by Models 1–2 in table6 and table7 and as shown in other studies. Indeed, labour contracts alone can never ensure sufficient social and labour protection for workers since violation of labour contract is frequent in China.
One interesting issue for future research is the extent to which a rural-urban divide is being replaced by a regional divide in which rural migrant workers and urban workers are disadvantaged relative to those with a local urban hukou. While our results recommend that urban workers are going well compared with rural migrant workers, we are not able to say anything about urban locals with our dataset. Such studies require datasets which cover rural migrant workers, urban workers and would benefit from datasets which extend to other cities to provide further comparisons.
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