| Abstract | Using data 2013 of China Health and Retirement Longitudinal Study(CHARLS), this paper analyze contributions of personal income tax which contain social security contribution and transfers instruments to the vertical, reranking and redistributive effects. In addition, we calculate efficiency of different kinds of public transfers on anti-poverty. The analysis reveals that when pensions are considered as public transfers, both urban and rural income inequality decrease higher significantly than the circumstances that pensions is included in market income. Rural' s pre- and post-fiscal of income inequality is higher than urban. when pensions are considered as market income, Dibao was the largest contributor to the redistributive effect. while pensions are considered as public transfers, pensions was the largest one. over 90% of redistributive effect is achieved by transfers and no more than 10% by transfers. Tekunhu subsidies, Wubaohu subsidies and Dibao assistance are better targeted to poor households, contributing to more poverty reduction and less spillover effects. When analysis was done for a sensitivity scenario in which contributory pensions are considered as public transfer, we find pensions have largest spillover effects. In turn, this means pension system have a long way to go in terms of anti-poverty. |