An Empirical Analysis Of Labor Employment Effected By The Replacement Of Business Tax By VAT

Since the reform of the tax sharing system in 1994,China has formed a collection tax regime that combines the value-added tax and consumption tax,which effectively promoted the development of China's market economy in the current economic environment.With the improvement of the overall economic level of our country and the continuous improvement of the economic system,the taxation system where both taxes and sales tax coexist has failed to meet the needs of social development at this stage.In order to meet the needs of socio-economic development and industrial restructuring,China implemented the value-added tax("Business Tax Replaced by Value-added Tax")in Shanghai for the first time in 2012.The scope of reform has also been from the "1+6" industry expanded to all industries in the country that pay business tax.The changes in the taxation policy not only effectively adapted to the changes in China's current economic situation,but also effectively promoted the restructuring of China's economic.The implementation of the policy of "Business Tax Replaced by Value-added Tax" will help achieve a balanced tax burden among various industries and bridge the gaps between different industries and solve the problem of the interruption of the offset chain.At the same time,the policy of "Business Tax Replaced by Value-added Tax" can increase the efficiency of resource allocation in the market,guide to allocate production factors and promote the growth of enterprises.This paper constructs a DID model and empirically studies the relevant data of 336 listed companies in Shanghai and Shenzhen A shares,and analyzes the impact of the implementation of the "Business Tax Replaced by Value-added Tax" policy on labor employment and its specific mechanism.This article is divided into five chapters.The first chapter mainly introduces the research background,significance,literature review,research ideas,frameworks and methods,main ideas and deficiencies.The second chapter briefly describes the causes,impact on economic development and the effectiveness of the policies that have already emerged.The third chapter empirically analyzes the impact of the policy on labor employment by constructing the DID Model,meanwhile,verifying the effect of the policy on the number of labor employment and the cost of labor expenditure.And according to the regional factors,industry factors,and company factors,explain the impact of the policy on labor employment.The fourth chapter first discusses the economic principles of the policy affecting labor employment from the perspective of the impact mechanism.Through searching for the mediating factors,combine the intermediary factors and the mechanism of the policy affecting labor employment,analyze and verify the specific mechanisms and effects of the policy on labor employment.The fifth chapter combines the above theoretical analysis and empirical results and sums up the impact of the "Business Tax Replaced by Value-added Tax"policy on labor employment and supplements the analysis of the impact of the"Business Tax Replaced by Value-added Tax" policy on labor employment at the macro level.Finally raise relevant policy recommendations based on the impact of employment.Through data screening and processing,this paper takes the 2016 data corresponding to 336 listed companies of Shanghai and Shenzhen A shares as the research object and uses the DID model to verify the impact of the " Business Tax Replaced by Value-added Tax" policy on labor employment:The policy can significantly promote the increase in the number of employees employed and can significantly promote the expenditure on labor capital of enterprises.At the same time,the analysis of the mediation effect model shows:the policy has an impact on the number of employees through the substitution and investment effects;the policy has an impact on the cost of labor expenses through income effect,substitution effect,and investment effect.