There are three major inequalities in China's social security system:
First, there is inequality between those inside and outside the system, and the pensions of those in the system are often much higher than those outside the system.
Second, there is inequality between urban and rural areas, and the basic pension of farmers is only 5 of the pension of urban workers26%。
Third, there is inequality between high-income and low-income groups. Excluding those who fall into poverty, high-income groups tend to receive more social benefits than low-income groups.
What are the consequences of excessive and unequal distribution of social welfare?
Since 2008, the growth rate of China's annual social security expenditure has far exceeded the economic growth rate, and the nominal average growth rate of China's social security expenditure from 2008 to 2014 was as high as 226%。
According to research data, in 2008, China's social security expenditure of the same caliber as the European Union accounted for 59% compared to 11 in 20155%。According to the author's rough estimate, China's social security level will reach about 15 in 2023. Since 2008, China's annual social security expenditure has increased significantly, but since 08 years, China's Gini coefficient has hardly declined, and China's Gini coefficient was 0 in 2008491, China's Gini coefficient in 2023 is about 047。