IDEAS home Printed from https://ideas.repec.org/a/asi/adprev/v8y2020i1p42-60id204.html
   My bibliography  Save this article

The Impact of Social Insurance Contributions on Firms Employment and Wages: Evidence from China Employer-Employee Matching Survey Data

Author

Listed:
  • Xinxin Ma
  • Jie Cheng

Abstract

Using China Employer-Employee Matching Survey (CEES) data from 2014 to 2016, this study examines the influence of social insurance contributions on the levels of employment and the wage levels in Chinese firms. We construct three indices of social insurance enforcement: the city contribution rate (CCR), the rate of city enforcement of social insurance (CE), and the firms’ actual contribution rate (FAR) to employ an empirical study. The new findings are as follows. First, those firms in regions with high city contribution rates or a high rate of city enforcement of social insurance are likely to employ more workers. A bipolarization phenomenon is found in the relation between the firms’ actual social insurance contributions and the adjustments to levels of wage and employment. Second, the impact of social insurance contribution on firms’ level of wages and employment differ by firms’ ownership types, in response to the increased social insurance burden, privately-owned enterprises are more likely to reduce wage levels than the state-owned enterprises.

Suggested Citation

  • Xinxin Ma & Jie Cheng, 2020. "The Impact of Social Insurance Contributions on Firms Employment and Wages: Evidence from China Employer-Employee Matching Survey Data," Asian Development Policy Review, Asian Economic and Social Society, vol. 8(1), pages 42-60.
    • Handle: RePEc:asi:adprev:v:8:y:2020:i:1:p:42-60:id:204
    as

    Download full text from publisher

    File URL: https://archive.aessweb.com/index.php/5008/article/view/204/384
    Download Restriction: no
    File URL: https://archive.aessweb.com/index.php/5008/article/view/204/1920
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yang, Chih-Hai, 2023. "Strengthening worker benefits or destroying jobs: Effect of the 2008 Labor Contract Law in China," International Review of Law and Economics, Elsevier, vol. 73(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:asi:adprev:v:8:y:2020:i:1:p:42-60:id:204. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Robert Allen (email available below). General contact details of provider: https://archive.aessweb.com/index.php/5008/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.