The Impact Of The "Labor Contract Law" Implementation On Corporate Behavior

Labor policy is directly related to the distribution of the interests of both labor relations,for enterprises to implement its new labor policy will have a major impact.In the background of the labor conflicts continued,and irrational allocation of resources,"Labor Contract Law"came into being,it aims to improve the strong capital,weak labor market labor basic pattern,building harmonious labor relations.On the one hand,the "Labor Contract Law" to protect the interests of workers equivalent to increases in the price of labor,capital and labor changes in relative prices occurs,companies must increase capital investment,lead to the substitution of capital for labor.On the other hand,labor cost growth is likely to encourage enterprises to take advantage of improving labor productivity means to seek profits,the incentive effects of labor costs reflected in the business through human capital investments to upgrade human capital utilization efficiency.Therefore,from the corporate level to study the "Labor Contract Law" implementation of the results,which will help improve enterprise management level,to improve the regulatory environment in the labor market.First,this paper reviews the literature on the relationship among labor law,labor costs and corporate behavior,at the same time from two perspectives of the human capital contribution and factor substitution to study the mechanism of the labor cost impact of corporate behavior after the implementation of the new labor law;Then,this paper uses of all the A-share listed companies from 2003 to 2014 data integrity of 412 enterprises as the research sample,based on VES production function model,by estimating the business capital of the rate of technical substitution and substitution elasticity of labor,in order to measure elements of an alternative behavior of enterprises,and uses the main business income per capita and human capital investment rate of return to measure human capital utilization behavior of enterprises;and finally,the paper utilizes the double difference model,treats the labor-intensive enterprises as treatment group,capital-intensive enterprises as the control group,examines respectively the impact of the new labor law capital-labor substitution behavior and human capital utilization behavior,and to consider the effects of policy implementation effect each year,analyzes the yearly results.The results showed that:(1)In 2003-2014,the substitution of capital for labor phenomenon is more significant in the enterprise,enterprises of different elements intensive have different degree of substitutability,the lower the capital-intensive business,the higher the degree of substitutability.2)Implementation of the "Labor Contract Law" significantly improves the enterprise capital substitution for labor,the smaller enterprises,with more profit,and non-state-owned enterprises have more obvious effects.(3)Whether from the perspective of enhancing the per capita income of the main business or from the perspective of enhancing the rate of return of the human capital investment,"Labor Contract Law" did not significantly improve the efficiency of internal human capital.(4)The impact of the "Labor Contract Law"for corporate behavior is a lag effect,it only appeared significant capital labor substitution effect in the implementation of the second year and showed an increasing trend year by year;in the third year after the implementation of the new labor law,policy effects of lifting the efficiency of Human Capital utilization only gradually emerge,there have been more serious lag.