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Effectiveness of China's Labor Contract Law——Evidence from China Employer-Employee Survey

Effectiveness of China's Labor Contract Law——Evidence from China Employer-Employee Survey
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摘要 Using micro-level data from China Employer-Employee Survey(CEES), this paper conducts an empirical analysis of firms' heterogeneous characteristics in the implementation of the Labor Contract Law and its effects on employees. Our findings are as follows: With China's economic development, firms more proactively implement the Labor Contract Law, resulting in a higher percentage of employees with labor contracts. Labor contracts significantly increase the probability of employees in receiving social insurances, such as pension, health, unemployment, work injury and birth insurances, and have a significantly positive effect on wage income. Longer term of labor contract corresponds to stronger employment protection, and such an effect is highly robust. Larger firms with higher capital-labor ratios have better results in implementing the Labor Contract Law. And employees of private and labor-intensive firms have poorer coverage of employment and social protection; such firms should be given focal attention in the law's implementation. Using micro-level data from China Employer-Employee Survey(CEES), this paper conducts an empirical analysis of firms' heterogeneous characteristics in the implementation of the Labor Contract Law and its effects on employees. Our findings are as follows: With China's economic development, firms more proactively implement the Labor Contract Law, resulting in a higher percentage of employees with labor contracts. Labor contracts significantly increase the probability of employees in receiving social insurances, such as pension, health, unemployment, work injury and birth insurances, and have a significantly positive effect on wage income. Longer term of labor contract corresponds to stronger employment protection, and such an effect is highly robust. Larger firms with higher capital-labor ratios have better results in implementing the Labor Contract Law. And employees of private and labor-intensive firms have poorer coverage of employment and social protection; such firms should be given focal attention in the law's implementation.
作者 Qu Xiaobo 屈小博
出处 《China Economist》 2018年第5期116-126,共11页 中国经济学人(英文版)
关键词 LABOR CONTRACT Law CORPORATE HETEROGENEITY EMPLOYEE heterogeneity implementation effect mechanism of influence Labor Contract Law corporate heterogeneity employee heterogeneity implementation effect mechanism of influence
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