The Influence Of VAT On Employee Behavior

VAT has deep influence in the field of Chinese enterprises and economic. VAT can reduce enterprise value-added tax. It has a lot of literature demonstrated by theoretical analysis and empirical evidence. Academic and policy research department is generally believed that the implementation of VAT, to encourage increased investment in machinery and equipment, to speed up the equipment renewal and reconstruction, promote enterprise technology progress and development. The substitution effect of capital to labor, however, can distort relative prices of capital and labor, which have a negative impact on jobs. This article makes a deep research to this.Based on existing literature and theory research results,we asset substitution effect as the breakthrough point. We adopted the combination of theory and empirical research methods, regarding employment practices at home and abroad for reference, the influence factors of research results and Chinese special system background and industry characteristics. We use comprehensively implement VAT policy of Chinese listed companies, by double difference model. The empirical test the VAT policy effect on enterprises employ behavior, taking this to the transformation of value-added tax which can effectively change the size of the listed company’s employees as well as the implementation of the judge can improve staff redundancy problem.In this paper, the characteristics of China’s listed company VAT policy gradually, by double difference model, empirically the effect of VAT on listed companies hire behavior, whether to take this to the transformation of value-added tax can effectively change the listed company of employees. We found that:due to the existence of the substitution effect, VAT to shrink the size of the enterprise employees. Studies have shown that the VAT has significant effect to the non-state enterprise employment practices, and there is no significant difference among employees of state-owned enterprises, we think that this is because of government intervention. State-owned enterprise workers degree is higher than non-state-owned enterprises. In addition, manufacturing and high technology industry is significantly influenced by the policy.