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Does the increase of labor protection intensity promote regional economic growth? Evidence from China

Author

Listed:
  • Xinpeng Xu

    (Sichuan International Studies University)

  • Xiaopeng Fu

    (Chongqing University of Technology)

  • Fuxia Gao

    (Sichuan International Studies University)

  • Yaqian Li

    (Chongqing University)

  • Yiming Xu

    (Sichuan International Studies University)

  • Yuchao Wang

    (Sichuan International Studies University)

Abstract

Using inter-provincial panel data from 1998 to 2012, and taking the implementation of China's new “Labor Contract Law” in 2008 as a quasi-natural experiment, this study uses the differences-in-differences empirical method to quantitatively analyze the impact of changes in labor protection intensity on local economic growth. The empirical results show that the enhancement of labor protection intensity can effectively promote economic growth in regions with higher levels of human capital, especially the eastern developed regions in China. Further research shows that this promotion effect is more obvious for the growth of the tertiary industry.

Suggested Citation

  • Xinpeng Xu & Xiaopeng Fu & Fuxia Gao & Yaqian Li & Yiming Xu & Yuchao Wang, 2023. "Does the increase of labor protection intensity promote regional economic growth? Evidence from China," Electronic Commerce Research, Springer, vol. 23(1), pages 155-173, March.
    • Handle: RePEc:spr:elcore:v:23:y:2023:i:1:d:10.1007_s10660-022-09604-1
    DOI: 10.1007/s10660-022-09604-1
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    References listed on IDEAS

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