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Abstract

This paper evaluates the effect of China’s New Rural Pension Scheme (NRPS) on labor supply of the rural elderly in the forms of both formal labor supply informal labor supply, using data from China Health and Retirement Longitudinal Study (CHARLS). We explore the regional differences of the NRPS effect on labor supply between the West and non-West regions of China. Our analysis shows that western rural China has a more severe problem of “ceaseless toil” compared to the rest of the country. We find that NRPS improves the “ceaseless toil” situation of the Chinese rural elderly but the results show a very different pattern between western China and other part of the country.

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