Economically Involved, Socially

Excluded:The Case of Old Age Survivors

in Transitional China

Pei Xiaomei, Ph.DTsinghua University Gerontology Center

Beijing, P. R. China

Gender Difference in Old Aged Security

Male Female------------------------------------------------------------------Pension Coverage 87% 55.1%------------------------------------------------------------------Average Monthly

Income (RMB) 745.7 528.6------------------------------------------------------------------Med. Insurance 72.9% 49.8%

Source: China Research Center on Ageing, Data analysis of the Sampling of Survey of the Aged Population in China,2003.

Gender Difference in Income among Urban ElderlyMonthly income aged women aged men____________________________________________________No income 7.4% 19.6%

Less than 100 1.5 5.2

100-199 36.1 10.4

1000+ 34.6 12.7_____________________________________________________Source: China Research Center on Ageing, Data analysis of the Sampling of Survey of the Aged Population in China,2003.

The Questions Among urban aged in China, women are much more

likely to be excluded from the social security programs than men. Who are these women?

As women’s labor participation rate has been high (78.3%) , why some of them are not qualified for pension benefits?

Some women are economically employed but socially excluded, what happened that drove them into this disadvantageous reality?

Methods

By interviewing 26 old age survivors aged ranging from 54 to 91 in two cities in China about their living conditions and life histories, we generated some valuable information about the life trajectories of these old women and how their life experience is shaped by the market and state.

Informal Employment and No Pension

More than half of the group was found to have a history of being employed for paid work.

Some of them had been in and out of labor market frequently in informal positions for family responsibilities or as low-cost reserved labor force and was kept away from a status of retiree and access to social security income.

Gender Difference by Type of Employment

Employment Type Male (%) Female (%)____________________________________________________

Formal Employment 59.8 47.8

Informal Employment 40.2 52.2__________________________________________________Total 100% 100%__________________________________________________Source: National Survey on women’s Status by China Women’s Federation, 2000.

Gender Difference in Social Security Coverage by Types of Employment

Employment covered by pension covered by med. Ins.(%) (%)

Type ----------------------------------------------------male female male female

-------------------------------------------------------------------------------Formal 84.7 81.3 73.9 65.5------------------------------------------------------------------------------Informal 14.8 10.4 14.4 9.0____________________________________________________Source: National Survey on women’s Status by China Women’s Federation, 2000.

The Myth of Family Support

The assumption of the availability of family support for those elderly persons who are excluded from current social security programs often serves as a political excuse for not including old age survivors into the old age security.

It is reasonable to question the effectiveness of this traditional system to address the contemporary needs of the aged Chinese.

Composition of Financial Support for the Urban Chinese Aged (%)

Female Male____________________________________________________Pension 61.32 67.23Family 13.06 4.58Social Insurance 8.75 8.31Paid Economic Activities 12.39 16.19Poverty Relief 0.19 0.68----------------------------------------------------------------------------Feeling of financially unsafe 31.6% 17.2%____________________________________________________Source: China Research Center on Ageing, Data analysis of the Sampling of Survey of the Aged Population in

China,2003.

The Role of the State in Constructing the Lives

of the Old Age Survivors

The status of these old age survivors are both historically and socially constructed. From a life course perspective, the difficult conditions into which they fall should be viewed as a consequence of a process of disadvantage accumulation. One could find a pattern of systematically disadvantaged over their life course.

Accumulation of Institutional Disadvantage

The division of labor under the state socialism

Old age security in the form of corporation welfare

The pension reform during the economic transition

Conclusion

The disadvantaged condition of many old age survivors at present has been shaped and perpetuated by the state policies at various stages of their lives.

As China is typical of a state dominant society, a fundamental improvement of the lives of the aged survivors is also expected through the change of the state policies from relief provision to entitlement provision.

Thank you !