Research On The Impact Of The Social Security System On Corporate Innovation And Total Factor Productivity

Since reform and opening in China,the domestic economy has developed at a high speed and people's living standards is increasing daily.However,due to the aging problem and labor relations becoming more serious and complex,government has carried out the comprehensive deepening reform of social insurance system to protect the citizens' basic rights and interests and maintain the social stability and fair.Under this condition,it is beneficial for the policy maker to evaluate the effect of social insurance system when comprehensively and deeply exploring how the social insurance system affect the corporate innovation and corporate productivity.Meanwhile,it can provide theoretical and empirical evidence and policy guidance to further promote the reform of supply side structural and is useful for government to balance the relationship between economic development and social security system.Furthermore,it is helpful to optimize the social security policy.Based on the reality,this paper conducts theoretical and empirical research on the impact of social insurance system on enterprises,and deeply analyzes the employee self-skill training mechanism and its influence.By sorting out the development process and current situation of Chinese social insurance system,this paper builds a relevant theoretical framework based on the social security theory,human capital investment theory and incentive theory,combined with existing academic achievements.Meanwhile,this paper constructs a model of self-skill training mechanism and focuses on the empirical analysis of the impact of social insurance contribution rate on the corporate innovation and total factor productivity and its transmission mechanism.Based on the Social Insurance Law of the People's Republic of China enacted in 2011,this paper constructs a difference-in-difference model and uses the panel data consisted of Chinese listed companies from 2007 to 2017 to verify the theoretical analysis on the effect of social insurance system on corporate innovation and total factor productivity.Meanwhile,this paper verifies employees' self-skill training mechanism based on China Household Finance Survey data.The empirical results show that the enactment of the Social Insurance Law stimulates the corporate social insurance compliance degree and increases the corporate social insurance contribution rate.Furthermore,the increase of the social insurance contribution rate has a significant positive impact on the corporate innovation and total factor productivity.The empirical regression results are still robust and consistent with the conclusion of theoretical analysis through a series of robustness tests,such as dynamic effect test,parallel trend test,changing explanatory variables and treatment variables,choosing subperiods and subsamples,and adding firms' other initial characteristics control variables and city-level control variables.In the further mechanism analysis,we find that the increase of social insurance contribution affects the corporate innovation through the employees' self-skill training mechanism.Meanwhile,the corporate total factor productivity is improved through the corporate innovation tunneling.In the meantime,this paper also finds that the firms' three internal characteristics,which are R&D intensity,financial condition,and corporate ownership,and three external environmental characteristics,which are industrial competition degree,regional legal environment and educational resources rich degree,have some moderating effects on the impact of the social insurance system on the corporate innovation and productivity.Specifically,when companies are state-owned enterprises,high R&D intensity and good financial condition,the effect of social insurance system on the corporate innovation will be even more significant.Meanwhile,while the enterprise belongs to the fierce competitive industry,located at the fair legal environmental and abundant educational resources area,the effect of social insurance system on the corporate innovation will be pronounced significant.In conclusion,based on the social security theory,human capital investment theory and incentive theory,this paper analyzes the impact of social insurance system on corporate innovation and total factor productivity and verify the tunelling through the theoretical analysis and empirical analysis.Meanwhile,this paper explores the moderating effect of corporate internal characteristics and external environmental characteristics.This paper provides the theoretical evidence and empirical evidence for comprehensively evaluating the effect of corporate social insurance system on the corporate behavior and corresponding economic consequences,and expands the research about the social insurance system,which belongs to the the labor protection system,on the corporate behavior.At the meantime,it also enriches the institutional economics,labor economics,macroeconomic policy,and corporate finance fields of research.