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ORIGINAL RESEARCH article

Front. Public Health
Sec. Health Economics
Volume 12 - 2024 | doi: 10.3389/fpubh.2024.1473166
This article is part of the Research Topic Healthcare Coverage and Payment Reforms in Low- and Middle-Income Countries View all 7 articles

Does the reform of the phased reduction of the pension insurance contribution rate benefit the labor income share of enterprises? *

Provisionally accepted
Dou Cheng Qiang Dou Cheng Qiang Liu Ying Liu Ying *
  • Shandong Technology and Business University, Yantai, China

The final, formatted version of the article will be published soon.

    This paper develops a theoretical model to clarify the mechanisms by which pension insurance contribution rate affects the labor income share of enterprises and conducts empirical validation.Methods: Utilizing a difference-in-differences approach, this paper analyzes data from China's A-share listed companies from 2013 to 2018 to examine the impact and mechanism of the phased reduction of the pension insurance contribution rate on enterprise labor income share.Results and Discussion: The phased reduction of the pension insurance contribution rate is beneficial for increasing enterprise labor income shares, with significant variations observed across regions and enterprise ownership types. The actual pension insurance contribution rate and capital intensity are two potential mechanisms through which this reform affects labor income share.Conclusions: In summary, we establish a causal link between the reform of the phased reduction of the pension insurance contribution rate and enterprise labor income share. This suggests that continuing the reform could increase labor income share, but it necessitates enhanced collection and management of pension insurance contributions, along with differentiated policies based on regional and enterprise ownership characteristics.

    Keywords: Phased Reduction, Pension insurance contribution rate, capital intensity, Labor Income Share, Income distribution JEL classification: D33, H20, H32, H55

    Received: 30 Jul 2024; Accepted: 27 Dec 2024.

    Copyright: © 2024 Qiang and Ying. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.

    * Correspondence: Liu Ying, Shandong Technology and Business University, Yantai, China

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