Measurement and Evaluation of the Operating Efficiency of China's Basic Pension Insurance: Based on Three-Stage DEA Model

Zhiguang Li; Xu Si; Zhiyuan Ding; Xiao Li; Shuai Zheng; Yuxin Wang; Hua Wei; Yige Guo; Wei Zhang

doi:10.2147/RMHP.S320479

Measurement and Evaluation of the Operating Efficiency of China's Basic Pension Insurance: Based on Three-Stage DEA Model

Risk Manag Healthc Policy. 2021 Aug 13:14:3333-3348. doi: 10.2147/RMHP.S320479. eCollection 2021.

Authors

Zhiguang Li¹, Xu Si¹, Zhiyuan Ding¹, Xiao Li¹, Shuai Zheng¹, Yuxin Wang¹, Hua Wei¹, Yige Guo², Wei Zhang³

Affiliations

¹ School of Economics and Management, Anhui University of Chinese Medicine, Hefei, Anhui, People's Republic of China.
² King's Business School, King's College London, London, UK.
³ School of Information Engineering, Anhui University of Chinese Medicine, Hefei, Anhui, People's Republic of China.

Abstract

Purpose: This paper aims to measure the operating efficiency of China's basic pension insurance from 2014 to 2019 in 31 provinces.

Methods: The three-stage DEA model was used to evaluate the operating efficiency of basic pension insurance in 31 provinces.

Results: On the whole, the operating efficiency of China's basic pension insurance was at a high level, but there was still room for improvement. GDP, urbanization level and scale of government public expenditure had a positive impact on the operating efficiency of regional basic pension insurance. In contrast, the old-age dependency ratio had a significant negative effect. There were noticeable regional differences in the operating efficiency of China's basic pension insurance, which showed a pattern of Central (0.742) >Eastern (0.689) >Western (0.505) after removing the influence of environmental variables.

Conclusion: This study systematically analyzes the impact of external environmental regulations on China's basic pension insurance's operating efficiency and provides decision-making references for further improving the operating efficiency of China's basic pension insurance. In order to further optimize the allocation of basic endowment insurance, this paper proposes the following countermeasures and suggestions: (1) broaden investment channels and improve the investment efficiency; (2) increase supervision of social security departments and strengthen information disclosure; (3) unify the management of social basic pension insurance.

Keywords: China’s pension insurance; operating efficiency; technical efficiency; three-stage DEA.

Grants and funding

This study was funded by the Social Science Foundation of Anhui Provincial Education Department under Grant No. SK2020A0235; key Supporting Discipline of Public Administration of Anhui University of Chinese Medicine under Grant No. DC18100048; and Anhui Key Team Building Project of Young and Middle-aged Ideology and Politics under Grant No. SZTSJH2019-8-28.