Assistant Professor Wanyu Yang's Paper Published in Jingji Yanji
March 17, 2021
Wanyu Yang, IAER Assistant Professor, published her paper in top Chinese journal, Jingji Yanjiu (Economic Research Journal) in January 2021. Entitled "The Effect of a Reduction of the Social Security Contribution Rate on Enterprise Social Security Participation and Labor Employment", the paper was co-authored with Associate Professor Hong Song and Professor Jin Feng from the School of Economics at Fudan University.
The reduction of the social security contribution rate has become an important strategy for easing enterprises' financial burden and promoting sustainable development of the economy in China. Comprehensive evaluations of the impact of such a reduction on firms' behavior have important academic and policy implications.
This paper uses the National Tax Statistics Database from 2007 to 2015 and employs a difference-in-differences model to investigate the effects of a reduction policy in the social security contribution rate in 2012 in Zhejiang province. Results show that the policy of reducing social security contribution rate achieves a win-win situation of increasing the participation rate of enterprises and maintaining the balance of social security fund. In addition, the reduction significantly improves the labor demand of enterprises. The study of this paper is helpful for an in-depth understanding of the economic and social effects of the social security contribution rate reduction policy implemented nationwide since May 2019.