| ID | 191157 |
| Title Proper | Corporate endowment insurance fee reduction and employee wages |
| Other Title Information | evidence from China |
| Language | ENG |
| Author | Guo, Lin ; Fang, Hongsheng ; Zhang, Xufei |
| Summary / Abstract (Note) | To stimulate economic growth, the Chinese government implemented three consecutive policies between 2016 and 2019 to reduce the corporate endowment insurance contribution ratio (CEICR), the highest payment item for Chinese companies. Using China's CEICR reduction policies as a quasi-natural experiment, this paper evaluates the impact of corporate payment burden reduction on employee wages. Generally, reducing CEICR appears to prompt companies to increase employee wages. Corporate cash flow is a possible channel of influence. Moreover, the positive effect is found to be more pronounced in companies that are more labor intensive, performing better in labor payment compliance, and located in regions with higher pressure for elderly care. This paper offers evidence in favor of implementing CEICR reduction policies from the perspective of improving the well-being of employees. |
| `In' analytical Note | China and World Economy Vol. 31, No.2; Mar-Apr 2023: p.192-222 |
| Journal Source | China and World Economy Vol: 31 No 2 |
| Key Words | Corporate Endowment Insurance Contribution Ratio Corporate Endowment Insurance Fee ; Employee Wages ; Fee Reduction Policies |