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Firm Compliance With Social Insurance Obligations Where There Is A Weak Surveillance And Enforcement Mechanism: Empirical Evidence From Shanghai

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Listed:
  • Pushkar Maitra
  • Russell Smyth
  • Ingrid Nielsen
  • Chris Nyland
  • Cherrie Zhu

Abstract

This article examines why firms in Shanghai comply or over-comply with social insurance obligations in a regulatory environment where the expected punishment for non-compliance is low. Our first finding is that firms found to be in non-compliance in the first audit in 2001 were moved into a separate violation category and the probability of being reaudited in 2002 was significantly higher if the firm was in that category. Our second main result is that, across the board, firms which were reaudited continued to underpay in 2002 but the extent of underpayment was significantly reduced. Copyright 2007 The Authors Journal compilation 2007 Blackwell Publishing Ltd

Suggested Citation

  • Pushkar Maitra & Russell Smyth & Ingrid Nielsen & Chris Nyland & Cherrie Zhu, 2007. "Firm Compliance With Social Insurance Obligations Where There Is A Weak Surveillance And Enforcement Mechanism: Empirical Evidence From Shanghai ," Pacific Economic Review, Wiley Blackwell, vol. 12(5), pages 577-596, December.
  • Handle: RePEc:bla:pacecr:v:12:y:2007:i:5:p:577-596
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    Cited by:

    1. Rickne, Johanna, 2013. "Labor market conditions and social insurance in China," China Economic Review, Elsevier, vol. 27(C), pages 52-68.
    2. Russell Smyth & Ingrid Nielsen & Qingguo Zhai, 2010. "Personal Well-being in Urban China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, pages 231-251.
    3. Nielsen, Ingrid & Smyth, Russell, 2008. "Who bears the burden of employer compliance with social security contributions? Evidence from Chinese firm level data," China Economic Review, Elsevier, vol. 19(2), pages 230-244, June.
    4. Russell Smyth & Ingrid Nielsen & Qingguo Zhai, 2010. "Personal Well-being in Urban China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, pages 231-251.

    More about this item

    JEL classification:

    • H83 - Public Economics - - Miscellaneous Issues - - - Public Administration
    • K20 - Law and Economics - - Regulation and Business Law - - - General
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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