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Understanding the Implementation Gap of China's Urban Pension Understanding the implementation gap of China’s urban pension scheme at the level of rural-urban migrant workers Yuan Wang Master of Management, Northwest A&F University, China Bachelor of Management, Xi’an University of Technology, China A thesis submitted for the degree of Doctor of Philosophy at The University of Queensland in 2016 Abstract China has recently undergone extensive reforms in its basic urban old-age pension policy, which intends to benefit all urban workers, including internal rural-to-urban migrant workers. In 2011, the Social Security Law, the first comprehensive law of China attempting to remedy social inequality, came into force. China has established pension schemes for both rural and urban workers. All workers employed in urban regions are entitled to the urban pension scheme, which offers pension benefits based on the cost of living in cities. However, implementation of the system and loopholes in the legislation have resulted in very low participation by migrant workers in the basic urban old-age pension scheme. As of the end of 2013, the migrant worker coverage rate of the old- age pension scheme remained less than 20% (NBS, 2014a). This gives rise to the following question: What implementation gaps hinder migrant workers from taking up this old-age scheme? Implementation gaps may occur throughout the entire policy implementation process, in which stakeholders at all levels (including policy makers, bureaucrats and recipients) play a role in the success of the policy. This thesis examined the implementation gap in the urban pension scheme at the bottom level, where rural-urban migrant workers constitute the potential recipients. Conceptualised using Mazmanian and Sabatier’s (1983) implementation theory and the theory of bounded rationality, the study focused on factors that influenced migrant workers’ intentions to join the urban old-age pension scheme and their perceptions of taking up the scheme. The research adopted a mixed-method approach with quantitative survey and qualitative interview data collected and analysed sequentially. In Phase 1, over 200 migrant workers were surveyed in Shenzhen, China, on their understanding of the urban pension scheme (including their intentions to join) and on factors that might influence their intentions to join (individual, land, settlement, and employment). Bivariate analysis and multiple regression models were used to statistically examine the main factors that influenced migrant workers’ intentions to join the scheme. This analysis showed that workers’ settlement plans (the likelihood to settle in cities and the decision to go back to their rural ii hometown) and land expropriation experience significantly influenced the intention to participate in the urban pension system. Furthermore, approximately 85% of survey participants did not understand the basics of the urban old-age pension scheme. Phase 2 consisted of semi-structured interviews with 12 migrant workers, which were designed to explore their perceptions of joining the urban old-age pension scheme. Based on preliminary results from the quantitative study, six migrant workers with land expropriation experience and six without were selected from the survey participants. Interview transcripts were subjected to thematic analysis. The rich elaborations in these interviews provided a detailed picture of the processes by which migrant workers perceive participation in the urban pension scheme—in both subjective and objective environments shaped by China’s unique social institutions. The results of the interviews shed light on the reasoning behind the intentions of migrant workers who had experienced land expropriation to settle in cities and join the old-age urban pension scheme. In addition, the interviews explored other factors that may influence their intention to join, such as experience of land expropriation, Communist propaganda, children and risk management considerations. The exploration of participants’ perceived feasibility of joining the urban pension scheme also showed that barriers such as lack of information, distrust of local governments, and sense of inferiority caused by the household registration system hindered participants from joining the scheme. Overall, this research suggested that for migrant workers to reap the full benefits of the urban old-age pension policy, the Chinese Government might need to better promote the scheme, especially among land-expropriated migrant workers and those who plan to permanently settle in cities. Promotion of the scheme would need to consider how China’s unique social, cultural and political environment influences policy implementation and migrant workers as recipients of the policy. iii Declaration by author This thesis is composed of my original work, and contains no material previously published or written by another person except where due reference has been made in the text. I have clearly stated the contribution by others to jointly-authored works that I have included in my thesis. I have clearly stated the contribution of others to my thesis as a whole, including statistical assistance, survey design, data analysis, significant technical procedures, professional editorial advice, and any other original research work used or reported in my thesis. The content of my thesis is the result of work I have carried out since the commencement of my research higher degree candidature and does not include a substantial part of work that has been submitted to qualify for the award of any other degree or diploma in any university or other tertiary institution. I have clearly stated which parts of my thesis, if any, have been submitted to qualify for another award. I acknowledge that an electronic copy of my thesis must be lodged with the University Library and, subject to the policy and procedures of The University of Queensland, the thesis be made available for research and study in accordance with the Copyright Act 1968 unless a period of embargo has been approved by the Dean of the Graduate School. I acknowledge that copyright of all material contained in my thesis resides with the copyright holder(s) of that material. Where appropriate I have obtained copyright permission from the copyright holder to reproduce material in this thesis. iv Publications during candidature No publications Publications included in this thesis No publications v Contributions by others to the thesis No contributions by others Statement of parts of the thesis submitted to qualify for the award of another degree None vi Acknowledgements First, I would like to express my sincere appreciation to my advisors, Associate Professors Paul Henman and Peter Newcombe. You have been tremendous supervisors for me, with your patience, motivation and immense knowledge. In addition to this PhD thesis, I have been able to prepare two articles for possible publication—all because of your assistance. My profound gratitude to Associate Professor Paul Henman for his support in other areas. You always helped me explore conference and other academic information, rendering me more enthusiastic about my academic work. You infused my PhD study with a productive academic atmosphere and always informed me of new publications and conferences related to my topic. As my principal supervisor, you organised the change of my supervision team and other research activities, ensuring that I received the best quality academic guidance during my PhD studies. You also invited me to your family dinners many times, and the warmth of your family is impressive. I would also like to extend my deep gratitude to Associate Professor Peter Newcombe, who agreed to be my supervisor with the change of my supervision team. Although you already had a number of students at the time, you still joined the team and contributed enormously to my project. Thanks to your patient guidance in quantitative research, I later found employment related to quantitative study—and this work experience vastly opened my working opportunities in Australia. As a non-native English speaker, I would have had little chance to work in the social sciences in Australia—a language-based area—without your help. For the non-scientific part, my sincere thanks go to one of my best friends, Gideon Kibret. Thank you for giving me tremendous support in the last three and a half years. Talking with you on all topics made me a more mature person, and your intelligent views inspired every aspect of my life. Exploring interesting things and food with you in Brisbane will remain extremely precious memories for me. Also, I will not forget that you and your family always offered me a room whenever I had trouble finding accommodation. vii A special thanks to my family. Words cannot express how grateful I am to my parents, Xiurong Sun and Jianning Wang. Mum, your encouragement in all areas of my life has sustained me thus far; you were always my support when I doubted myself. And lastly, I thank all the people whom I have encountered during the last four years. You made my PhD not only about a thesis, but also about a memorable journey with happiness, challenges and ever-changing outlooks on life. viii Keywords China, rural-urban migrant workers, basic urban old-age pension scheme, implementation gaps, bounded rationality, choice-making Australian and New Zealand Standard Research Classifications (ANZSRC) ANZSRC code: 160512, Social Policy, 60% ANZSRC code: 160303, Migration, 20% ANZSRC code: 160305, Population Trends and Policies, 20% Fields of Research (FoR) Classification
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