How Does Instability in Social Insurance Contributions Affect Young People’s Views of Social Mobility Within and Across Generations?

Abstract

This study examines how instability in social insurance contributions among young people aged 19 to 34 affects their views about social mobility, both within their generation and across generations, using the raw data from the 2023 Social Integration Survey. Our ordered-logit regression analysis found that social insurance instability did not have a statistically significant effect on the prospects for social mobility within the young people's generation. However, it did have a significant effect on the outlook for social mobility between generations. Specifically, compared to young people participating in all four social insurance schemes, those participating in none were about 78% more likely to be pessimistic about upward socioeconomic mobility in their children's generation. Based on the results, the study highlights the need for institutional improvements to address gaps in social insurance coverage for young people, such as expanding childbirth and military service credits, and for developing measures to alleviate the economic burden of social insurance premiums. This study is of theoretical significance in that it focuses on instability in social insurance contribution as an indicator of the vulnerability of young people's lives in the context of low growth and employment shocks, and that it expands on and demonstrates the effect of social insurance as both a social safety net and a psychological safety net.