Abstract:

A priority objective of the social security reform in China is to expand the coverage of the basic pension program. Utilizing OLS models with provincial data from 1998 to 2003， we found that two macrolevel economic factors （i.e.， degrees of economic development and market regulation of the economy） and two policy factors （i.e.， basic security benefit level and fiscal support for security supplement） were the major determinants of the variation of the coverage rates among provinces. Based on these findings and the consideration of the continuous economic development as well as the intensification of market economy in China， we espouse a cautious but optimistic belief in the constant growth of our social security. We insist that， at present， “low payments with wide coverage” be a reasonable policy choice that must be adhered to as it fits the situation of our country. Local governments should increase financial support for social security， whenever financially affordable.

Key words: basic pension program, coverage rates, provincial differences