The Impact Of Social Insurance Contributions On Enterprise Innovation

In the course of economic development over the past several decades,labor advantage has been an important factor in the rapid growth of our national economy.With the growth of domestic economic volume,the improvement of people’s living standards and the comprehensive quality of labor force,demographic dividend gradually disappeared.What follows is the change of industrial structure brought by industrial transfer,and the contradiction between labor demand and labor supply of enterprises becomes more and more fierce.In recent years,employment has been the top priority of the government’s work.Employment is the foundation of people’s livelihood and has attracted wide attention from the society.In addition,the global economic downturn in recent years has further worsened the employment situation,and the employment situation is still very severe.In this context,it is very important to reconcile the contradiction between protecting the basic rights and interests of laborers and controlling the labor cost of enterprises.Social insurance is the most basic guarantee for workers,"Insurance Law of the People’s Republic of China" provisions of social insurance is usually referred to as the "five insurance",since 2015,the social insurance statutory contribution rate has been reduced for many times,the current enterprise for employees to bear the proportion of the "five insurance" between 23.7%-25.9%.Although this proportion has been reduced,but compared with developed countries there is still some gap.Innovation is the primary driving force for development and the strategic underpinning for promoting high-quality development and building a modern economy.In the new era,innovation will play an increasingly important role.In recent decades,the Party and the government have attached great importance to innovation.They have mentioned "innovation" in government documents for many times.At the same time,they have also introduced a series of policies to promote innovation among various market players.However,the resources of enterprises are limited.With the continuous growth of the social wage level and the improvement and implementation of laws related to labor protection,the labor costs of enterprises continue to rise,causing a burden on the operation of enterprises,and thus affecting the enthusiasm and cost of innovation of enterprises.Facing some problems encountered in current development,China is committed to promoting supply-side structural reform.In this context,a comprehensive and in-depth exploration of the impact of social security system on enterprise innovation will help to seek impetus for enterprise development and provide theoretical and practical guidance for policy makers.This paper first describes the research background of this paper,and then reviews the previous literature from domestic and foreign.At the same time,it discusses the related concepts and current situation of social insurance contribution and enterprise innovation,and analyzes the mechanism of social insurance contribution affecting enterprise innovation.On this basis,the empirical method is used for further analysis,and the balance panel data of social insurance contribution and innovation of China’s non-financial listed enterprises from 2012 to 2021 is selected.The two-way fixed-effect model is used to draw a conclusion: When the social insurance contribution burden increases by one percentage point,the innovation output of enterprises will decrease by1.466 percentage points,which is significant at the 1% level.The robustness test of this result is carried out,and its credible result is obtained.According to previous studies,different types of enterprises often have different innovation capabilities.Therefore,this paper also carries out heterogeneity analysis from three aspects: industry,region and property right nature of enterprises,and draws the conclusion that the innovation output of manufacturing,eastern regions enterprises and non-state-owned enterprises is more significantly affected by the social insurance contribution burden.Finally,this paper puts forward countermeasure and suggestions based on theoretical and empirical analysis,so as to provide reference for promoting Chinese enterprise innovation and safeguarding workers’ basic rights.