Purpose: The purpose of this paper is to examine the effect of New Rural Pension Scheme (NRPS) on the private transfer behavior of the non-co-resident adult children to their elderly parents in rural China, and hence address the income redistribution effectiveness of public program for the elderly in rural China. Design/methodology/approach: Pooled data from two waves of the China Health and Retirement Longitudinal Study and the combination of regression discontinuity design and difference in difference method are used to perform the analysis. Findings: No evidence is found that pension payment from NRPS program does significantly crowd out the economic support from the adult children to their elder parents. The heterogeneous effects at different income percentile indicate that pension payment significantly increases the probability of receiving gross transfers and likelihood of the net transfer being positive for those elderly individuals with low income; in particular, the distinctive “family binding” arrangement may dramatically contribute to increasing the probability of receiving private transfers for the pension recipients. Originality/value: The empirical findings would have far-reaching implications for the efficacy of public transfer or re-distributive programs such as NRPS; for the rural elderly, in particular, the unique “family binding” mechanism under the NRPS program may have positive welfare effects on the intended beneficiaries. Furthermore, an understanding of the inter-linkage between informal arrangements of elderly support and social re-distributive program provides further insight into the design of social security systems targeted to the vulnerable group in developing countries.

This paper identifies the causal effect of commute time on labor supply in urban China and provides implications for the development of active commuting. Labor supply is measured by daily workhours, workdays per week and weekly workhours, and city average commute time is adopted as an instrumental variable to correct the endogenous problem of individual commute time. We find that in urban China, commute time does not have effect on daily labor supply but has negative effects on workdays per week and weekly labor supply. These results are different from those found in Germany and Spain, and are potentially related to the intense competition among workers in the labor market of China. Moreover, the effect of commute time on workdays per week is stronger for job changed workers. In addition, the effects of commute time on labor supply are not different between males and females. Finally, policy implications for active commuting are discussed.