| Abstract | Based on labor participation model and labor supply model, this paper investigates the effects of old-age security on labor supply by using rural household survey. The results show that old-age security system has a remarkable effect of labor supply. Covering the old-age insurances makes total and agriculture labor participation rate decreased by 23.7 percent and 26.6 percent, and total and agriculture labor supply time decreased by 6.7 days and 7.5 days respectively. Benefiting from the old-age insurances makes total and non-agriculture labor participation rate decreased by 15.4 percent and 34.6 percent. The pension has a rather prominent income effect, which stimulate rural residents to reduce labor participation rate or quit from labor market quickly. However, various types of old-age security system have different effects of labor supply. The New Rural Pension tends to encourage rural residents stay in agriculture and rural, but the Urban Employee Pension and the Migrant Workers Comprehensive Pension tend to motivate them leave rural and engage in non-farm employment, and the Landless Farmer Pension tends to them quit from the labor market. Social security system is accelerating change of the labor market, we should seek to a social security system adapting with current labor market and economic development in China. |