DO KINSHIP NETWORKS CROWD OUT THE NEW RURAL PENSION PLAN IN CHINA? POLICY IMPLICATIONS FOR AN AGING CHINA

Using data from China Family Panel Studies in 2012, this paper investigates the impact of kinship networks on participation in the New Rural Pension Plan (NRPP) in China. The theoretical model and empirical results indicate that kinship networks can provide informal social security, such as psychological security and financial transfers from relatives. Thus, people who are part of stronger kinship networks are less likely to participate in the NRPP than their counterparts. Our research facilitates an understanding of the interaction between social networks and formal institutions and provides policy implications for an aging China.