Association for Public Policy Analysis & Management

In the midst of rapid economic growth and urbanization, China is faced with a looming crisis of population aging and rising inequality. This has dominated policy discussions as policymakers leverage on social welfare programs to address such development-induced issues. Intergenerational support, which sits at the core of the Chinese cultural value of filial piety, also plays a complementary role in support of the aged. Though research has been conducted on the effect of public social welfare policies and intergenerational support on wellbeing, most studies do not probe into the distinct categories of urban elderly. Research on the effect of the burgeoning commercial welfare programs on wellbeing is also limited. Using an ordered logit regression model, this study analyzes the overall wellbeing of urban elderly as well as across age groups and income levels with 2011 and 2013 panel data from China’s Health and Retirement Longitudinal Survey. The empirical results indicate that public welfare schemes are beneficial in promoting the overall wellbeing of the urban elderly. Commercial pension and medical insurance programs, nonetheless, enhances wellbeing when life expectancy and health status are considered. Intergenerational assistance through monetary and emotional support from non-cohabiting children generally promotes wellbeing. However, co-habiting with children is detrimental to wellbeing, especially among the high-income earners and urban elderly below 60 years old. The degree of importance, however, varies across the aforementioned groups. It is therefore imperative for policy reforms to be instituted to meet the diverse welfare needs of the urban elderly in China.