The lock-in effect of non-portability of new rural social endowment insurance’s on rural labor mobility: an alternative for the lock-in effect of New Rural Cooperative Medical System

YU Xinliang1 SHEN Yupeng1 LI Hongbo1

(1.School of Insurance, Shandong University of Finance and Economics)

【Abstract】This study theoretically analyzed the lock-in effect of New Rural Social Endowment Insurance (NRSEI) on the rural labor migration. Data of China Labor-force Dynamics Survey (CLDS) in 2016 were used for conducting empirical tests. A comparative analysis was also carried out on the relationship between the New Rural Cooperative Medical Insurance (NRCMI) and NRSEI in terms of their lock-in effects on the rural labor migration. It was found that NRSEI reduced the migration probability of rural labor by 56.82%, and reduced the inter-town migration probability of rural labor by 58.04%. The lock-in effect of NRSEI on youth and young adults was stronger than on elderly adults. The probability that rural workers migrating out of their hometowns and becoming migrant workers was reduced by 34.03% after they joined the NRSEI scheme. In addition, for rural workers without NRSEI, NRCMI still had a certain lock-in effect on their migration. However, after rural workers joined the NRSEI scheme, the lock-in effect of NRCMI was almost completely replaced by that of NRSEI. This study showed that with the current trend characterized by accelerated new development for urbanization, it was particularly important to change the non-portability of rural endowment insurances represented by NRSEI.

【Keywords】 New Rural Social Endowment Insurance; non-portability; rural labor mobility; lock-in effect;


【Funds】 Young Scientists Fund of National Natural Science Foundation of China (71804090) Youth Project of the National Social Science Fund of China (19CSH073). Special Fund for Taishan Scholar Project (tsqn20161041)

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(Translated by ZHANG Wei)


    [1]. ① Data source: the website of Ministry of Human Resources and Social Security of the People’s Republic of China, [^Back]

    [2]. ① Data source: [^Back]

    [3]. ② Data source: [^Back]

    [4]. ① In December 2005, as stipulated in Decisions on Improving Basic Endowment Insurance System for Firms’ Employees published by the State Council, from January 1st, 2006, to distinguish between social pooling funds and individual account funds, the amount to be paid into a personal account for basic endowment insurance was changed from 8% to 11% of a person’s salary. [^Back]

    [5]. ② Data source: [^Back]

    [6]. ③ Data source: [^Back]

    [7]. ① The National Bureau of Statistics of China defines those migrant workers who work in the places where their households are registered as local migrant workers, and those who work outside of their hometowns as non-local migrant workers. [^Back]

    [8]. ① As stipulated in State Council’s Instructions on Trial of New Rural Social Security Insurance, during the trial, NRSEI should be managed at the county level temporarily, as the trial expands its scale and coverage, NRSEI should be managed at a higher level, and may be directly managed at the provincial level in the places where it is applicable. Following these instructions, in the places where the trial of NRSEI is carried out, management at the county level is implemented. [^Back]

    [9]. ① Data source: Department of Population and Employment Statistics of the National Bureau of Statistics of China & the Planning and Finance Department of the Ministry of Human Resources and Social Security of the People’s Republic of China (eds.). China Labor Statistical Yearbook2017 (中国劳动统计年鉴(2017)). Beijing: China Statistics Press, (2017). [^Back]

    [10]. ② For more details, please refer to: 9/04/content_7280.htm [^Back]


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This Article


CN: 11-3586/F

Vol , No. 06, Pages 109-126

November 2019


Article Outline


  • 1 Introduction
  • 2 Literature review
  • 3 Theoretical model
  • 4 Setting of quantitative model and data descriptions
  • 5 Estimated results
  • 6 Comparative analysis of lock-in effect of NRSEI and NRCMI
  • 7 Conclusions and implications
  • Footnote