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The standard system and corporate labor employment: Empirical evidence from China's comprehensive standardization reform

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  • Lianchao Yu
  • Hongji Geng
  • Feifei Song
  • Changheng Zhao

Abstract

This study employs China's comprehensive standardization reform as an exogenous policy shock to investigate the impact of the standard system on corporate labor employment. The findings indicate that comprehensive standardization reform facilitates corporate labor employment by reducing transaction costs, enhancing operational efficiency, and improving the financing environment. The heterogeneity analysis reveals that the effects of comprehensive standardization reform on corporate labor employment are more pronounced in firms with non‐state ownership, operating in competitive industries, located in regions with lower levels of marketization, and exhibiting significant gender disparities. Overall, this study highlights the employment externalities associated with the standard system.

Suggested Citation

  • Lianchao Yu & Hongji Geng & Feifei Song & Changheng Zhao, 2025. "The standard system and corporate labor employment: Empirical evidence from China's comprehensive standardization reform," Contemporary Economic Policy, Western Economic Association International, vol. 43(3), pages 495-519, July.
    • Handle: RePEc:bla:coecpo:v:43:y:2025:i:3:p:495-519
    DOI: 10.1111/coep.12688
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