EMPIRICAL STUDY ON THE STATUS QUO OF SMALL AND MICRO ENTERPRISES (SME) MIGRANT WORKERS’ PENSION INSURANCE AMID CHINA’S URBANIZATION
Journal Title: Academic Research International - Year 2013, Vol 4, Issue 5
Abstract
Amid China’s rapid urbanization, many migrant workers play an important part as employees in labor-intensive SMEs (Small and Micro Enterprises). However, given the limited funds of SMEs, welfare protection of these migrant workers is relatively weak, which among many other reasons, leads to their pension insurance not being guaranteed. Consequently, migrant workers might exhibit poor motivation, which has a negative effect on EMEs’ development. Through a field investigation from Chang Shu in Jiangsu Province, this paper uses a logistic model to analyze the main factors affecting the status of insurance among migrant workers. The results indicate that the current low proportion for joining the pension system is mainly due to two aspects, the relatively weak normalization of enterprise systems and operation obstacles. The results also reveal important causes for the lack of normal pension insurance. When enterprises supply labor with a formal pension system, they will be positively related with the proportion of insurance possibilities. Aside from the above main constraints, other factors, such as education degree, revenue, and security awareness, affects the proportion, albeit to a lesser degree. Thus, the absence of policies that provide solutions for these at-risk social groups not covered by the pension system creates a crucial contradiction to urban safety, security, and development.
Authors and Affiliations
Cai Li
Keywords
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