Research On The Impact Of Social Insurance Contributions On The Employment Of Enterprises

Human life has been extended largely with the support of socioeconomic development and advances in medical technology.However,the birth rate of the population has continued to decline because of social concepts,economic conditions and other reasons,which make the phenomenon of aging been obviously in China.It not only affects the structure of labor market,but also increases the pressure of market employment,which is not conducive to the high-quality development of society.Enterprises are the key carriers for providing jobs.The employment market can be operated steadily only when enterprises gain necessary profits.However,the cost of employment brings pressure to enterprises.The Chinese government has recognized the importance of reducing the burden on enterprises,so the relevant policies such as"tax reduction and burden reduction" were issued.At the same time,the social insurance contributions rate was reduced.Although these measures have alleviated the operating pressure of enterprises,they are still under great financial pressure when facing the fierce market competition and the negative impact of the COVID-19,such as shutdown and production suspension.Based on the completely competitive market,enterprises will transfer their operating costs by reducing the wage and scale of labor employment,so as to reduce the burden of enterprises,while facing the employment cost of social insurance contributions,which will inevitably bring negative impact on China’s labor employment market.So,it is of great practical significance to analyze the impact of social insurance contributions on the employment of enterprises.This thesis analyzes the impact of social insurance contributions on the employment of enterprises by the methods of literature research,normative analysis and empirical analysis.By searching the relevant literature,this thesis summarizes the domestic and foreign research on the impact of social insurance contributions and social insurance contributions on the burden of enterprises.In the theoretical part,it defines the concepts of social insurance,social insurance contributions,and labor employment,and combs out the theories of payroll tax incidence,labor cost,labor supply and demand.This thesis sorts out the development process of China’s social insurance system,and analyzes the current situation of China’s enterprise labor employment from two aspects of enterprise labor employment wage and enterprise labor employment scale.In the empirical analysis part,the panel data of 1996 A-share listed companies in China’s Shanghai and Shenzhen stock markets from 2014 to 2021 are taken as the research sample,the actual social insurance contributions rate of enterprises is selected as the explanatory variable,and the wage of enterprise labor employment and the scale of enterprise labor employment are selected as the explanatory variable,and the benchmark model and simultaneous equation model are established to explore the impact of social insurance contributions on enterprise labor employment from multiple perspectives.Through the test and analysis,the following conclusions are drawn:(1)The actual social insurance contributions rate of the enterprise has a significant negative effect on the wage and employment scale of the labor force,which is specifically shown as follows:for every 1%increase in the actual social insurance contributions rate of the enterprise,the wage of the labor force decreases by 0.2354%,and the employment scale of the labor force decreases by 0.4944%;(2)The negative effect of the actual social insurance contributions rate of non-state-owned enterprises on the wage and scale of labor employment is more significant than that of state-owned enterprises.(3)Manufacturing enterprises are affected by the industry characteristics of labor-intensive,and the negative effect of the actual social insurance contributions rate of enterprises on the wage and scale of labor employment is higher than that of enterprises in other industries.(4)Compared with large-scale enterprises,the actual social insurance contributions rate of small-scale enterprises has a more significant negative effect on the wage and scale of labor employment.This thesis puts forward suggestions to optimize the social insurance contributions rate based on the above research contents.On the level of government,it should formulate the social insurance contributions rate in line with China’s economic development,broadening the channels of financial subsidies,reducing the cost of corporate social insurance contributions,and strengthening the supervision of social insurance contributions.On the level of enterprise,it should accelerate transformation and upgrading,improving production efficiency,deepening the employment system,reducing labor costs,and reasonably selecting the company’s registered place and main business place;On the level of workers,actively promote supplementary social insurance to meet the social security needs of enterprises and workers.By taking the above measures,crowding-out effect of social insurance contributions on the employment of enterprises can be reduced effectively.