The Effect Of Accelerated Depreciation Tax Policy On Enterprise Labor And Employment

Employment is the most important to people’s wellbeing and bears on people’s well-being and social stability.However,in recent years,with the increasing downward pressure on China’s economy,employment is also facing many challenges.The roiling unpredictability of the international situation and the outbreak of COVID-19 have made our country’s already grim employment situation even worse.Against this backdrop,the Party and the government have taken stabilizing and expanding employment as a major goal of economic and social development,placed stable employment and ensuring employment at the top of the list of "six measures of stability" and "six measures of security",and stressed that "fiscal,monetary and investment policies should concentrate on supporting stable employment".However,accelerated depreciation of fixed assets,as an important tax preference in line with the supply-side structural reform,will induce enterprises to adjust the allocation of capital and labor production factors while encouraging enterprises to invest and update equipment? Does it run counter to the goal of "stable employment" ? Therefore,it is of great research value to link the income tax preferential policy to stimulate investment with employment.This paper focuses on the small and medium-sized enterprises known as "employment reservoir".Taking the data of listed companies on the small and medium-sized board from 2011 to 2017 as samples,this paper uses the difference method to investigate the impact of accelerated depreciation of fixed assets tax policy on labor and employment of enterprises in 2014 and its influence channels.Firstly,the relevant literature is sorted out,and then the development process of preferential tax policy for accelerated depreciation of fixed assets is sorted out,and the policy implementation effect and employment situation are illustrated more directly using the data.Secondly,based on depreciation compensation theory,net present value theory,capital use cost,the effect of tax on labor demand and information asymmetry theory,the mechanism of accelerated depreciation tax policy on labor employment of enterprises is clarified.Then,on the basis of theoretical analysis,this paper empirically analyzes the impact of accelerated depreciation tax policy on labor and employment of small and medium-sized board listed companies.In order to ensure the reliability of the results,this paper conducts a series of robustness tests on the basis of benchmark regression,and further clarify the internal mechanism.At the same time,considering that enterprises with different characteristics are affected by different policies,heterogeneity analysis is carried out from the dimensions of company attributes,regional factors and labor skill structure.Finally,the theoretical analysis and empirical results of the previous paper are summarized and further put forward targeted suggestions.The results of this paper show that,contrary to popular concerns,the accelerated depreciation tax policy has a significant positive incentive effect on the employment behavior of small and medium-sized board listed companies,and the accelerated depreciation tax incentive increases the labor demand of pilot enterprises by 11.8%.The results of mechanism analysis show that the accelerated depreciation tax policy has "scale effect" and "substitution effect" on labor demand,and the "scale effect" is greater than the "substitution effect",thus improving the employability of small and medium-sized board listed companies.In addition,the accelerated depreciation tax policy alleviates the financing constraints faced by the operation and releases the labor and employment demand of small and medium-sized board listed companies.Further attribute from the company,regional location,labor skill structure dimension of heterogeneity test show that the accelerated depreciation tax policies for small and medium-sized enterprises to employ labor incentive is mainly manifested in non-state enterprises,small-scale enterprises,labor-intensive enterprises and financing constraints is higher and the eastern part of the enterprise,the pilot enterprises and more inclined to hire more low-skilled Labour.Finally,combined with the research results of this paper,the following suggestions are put forward:(1)expand the scope of application of accelerated depreciation of fixed assets tax policy;(2)alleviate "financing difficulties" and "expensive financing",and improve the employment absorption capacity of smes;(3)Enhance smes’ ability to hire more high-skilled workers and increase training for low-skilled workers;(4)Use tax policies to coordinate regional economic development;(5)Increase tax incentives for small and medium-sized private enterprises.