The Impact Of Urban Employee Pension Contribution Rate On Employment

Considering that urban employee pension is an important part of the enterprises’employment costs,local governments have a tendency to reduce the employment costs of enterprises in order to attract investment and expand employment.Therefore,local government will reduce the intensity of urban employee pension collection in the context of fiscal decentralization.The actual contribution rate of urban employee pension is low.However,the aging problem has caused a growing gap in the income and expenditure of pension for urban employees in China.And the uneven flow of labor forces has further increased the pressure on pension payments in Heilongjiang and other provinces.From the perspective of the actual pressure on pensions,it is necessary to increase the intensity of urban employee pension collection.Against the background of the contradiction between reducing the intensity of urban employee pension collection to promote employment and the excessive payment pressure on pension funds,this article selects urban employee employment as the research object.This article measures the impact of actual contribution rate on urban employment.Considering the spatial dependence of the variables,this paper builds a spatial econometric regression model based on panel data from 31 provinces and regions in China from 2009 to 2015,and analyzes the impact of actual contribution rate of urban employee pension on the proportion of urban units and private enterprises employed in the urban population.On the basis of regression,this article also obtains the direct,indirect and total effects of the actual contribution rate of urban employee pension on the proportion of urban units and private enterprises employed in the urban population.In addition,the article performs a robustness analysis using the financial report data of listed companies to prove that the results are robust.The research conclusions are as follows:the actual contribution rate of pension for urban employees has two effects on the proportion of urban units and private enterprises employed in the urban population.From the perspective of direct effects,a province’s actual contribution rate of urban employee pension decreases,its employment rises.However,the actual contribution rate of pension for urban employees has spillover effects.Declining contribution rates in neighboring provinces will cause the province’s employment to decline.In the end,the actual contribution rate of the urban employee pension will not have a significant impact on employment because local governments race to the bottom.In addition,urban employment is spatially dependent.An increase in the employment level of a certain province will help boost employment in neighboring provinces,and there will be coordinated regional development.