Labor Protection And Export Of Private Enterprises

With the continuous development of China's non-public economy and the deepening degree of participation in the international division of labor,private enterprises have gradually become an important force in the development of China's foreign trade,and continue to maintain its position as the largest exporter.As an important part of the cost of export products,labor cost has been on the rise in recent years,which will affect the export decision of enterprises.In 2008 on the implementation of "Labor Contract Law" although is a nationwide unified implementation,but due to different areas of economic,social and legal development environment is different,the labor protection level and then makes the various areas of the private enterprise has a different degree of rising labor costs,this is bound to the production activity of private enterprises and export behavior lead to different effects.Considering the importance of private enterprises' exports to China's economic development,it is particularly important to study the impact of the labor contract law on the export behavior of private enterprises.There are few studies on this topic.This article starts with the difference in the actual labor protection degree of the Labor Contract Law in different regions,and is designed to answer these questions: First,what is the impact of the labor contract law on the export probability and export volume of private enterprises with different degrees of labor protection in their regions? Second,if there is an impact,is this impact heterogeneous? Third,what are the microscopic mechanisms that bring about this effect?This paper answers the above three questions based on the following three parts:Firstly,based on the data from 2006-2012 "China Private Enterprise Survey" and the data from "China Judgments online",this paper quantitatively analyzes the influence of the labor contract law on the export extensive margin and the intensive margin of Chinese private enterprises in regions with different labor protection degrees by using the difference-in-differences method.The benchmark results show that the stricter the labor protection in the cities where the firms are located,the greater the negative impact of the implementation of the Labor Contract Law on the export probability and export volume of firms.The heterogeneity analysis shows that the export behaviors of enterprises with higher minimum wage,higher labor intensity,stronger financing constraints and smaller scale in the region are more adversely affected by the labor contract law.In the secondary industry,the labor contract law has a more negative impact on the export behavior of private enterprises.Secondly,according to the existing data,this paper further tests the mechanism of the negative impact of the implementation of the labor contract law on the export probability and export value of private enterprises in regions with different labor protection intensity.“Labor contract law" issued by improving the enterprise hiring workers labor costs(mainly non-wage expenditure),reducing the number of long-term workers employed by firms and increasing the proportion of collective contracts between employers and employers,to influence the profits of enterprises and production activities,and then participate in the international market.Finally,combined with the research conclusions of this paper,this paper expounds the policy implications,and puts forward reasonable policy suggestions on how the government can better formulate policies and how enterprises can better take actions to cope with the policy burden.To some extent,this paper also provides some Suggestions for the Chinese government to balance social harmony and sustained economic growth.