Study On The Contagion Effect Of The Rising Labor Cost In Enterprises

In recent years,labor costs have continued to rise substantially.Previous literatures have explained this phenomenon from different perspectives,such as rising performance,implementation of labor contract law,minimum wage system,etc.However,it is difficult for rising performance to explain the phenomenon of generally rising labor costs;The impact of labor contract law on labor cost should only appear before and after the time node,but cannot explain the continuous rise of labor cost in time series.The minimum wage system is designed only to protect the interests of basic wage workers,but it still fails to explain the general rise in labor costs.Previous literatures paid more attention to individual enterprises rather than the mutual contagion of labor costs between enterprises.From the perspective of behavioral finance,this paper examined the contagion effect of rising labor costs based on the interaction between macro external environment and micro enterprise behaviors and based on the interaction between micro enterprises and micro enterprises.By studying the labor cost data from 2004 to 2017,this paper analyzes the changes in labor costs of other enterprises affected by the significant increase of labor costs in the same industry and in the same region,and analyzes the influence of moderator variables on the "contagion effect".This paper draws the following research conclusions:(1)There is a contagion effect in the rise of labor cost among enterprises;(2)The awareness of rights protection of employees in the region where the enterprise is located,the degree of aging of the population and the intensity of competition in the industry where the enterprise is located have a certain strengthening effect on the contagion effect of rising labor costs;(3)Further explore the impact of relevant factors on the contagion effect of rising labor costs.The results show that: compared with labor-intensive enterprises,the contagion effect of rising labor costs between non-labor-intensive enterprises is greater;Compared with regions with low population mobility,enterprises in regions with high population mobility are more affected by the contagion effect of rising labor costs.Compared with enterprises with low cash holdings,enterprises with high cash holdings are more affected by the contagion effect of rising labor costs.Compared with enterprises with small differences between ordinary employees and senior executives,enterprises with large differences in salary are more affected by the contagion effect of rising labor costs.Assuming other conditions remain unchanged,no matter the original labor cost is high or low,all enterprises show the contagion effect of rising labor cost,but the contagion effect of rising labor cost is not significantly different between enterprises with higher original labor cost and those with lower original labor cost.The main innovations of this paper are :(1)From the perspective of research,this paper expands the research extension of "contagion effect" from the perspective of behavioral finance,and better explains the continuous rise of labor cost in recent years.(2)From the perspective of research field,previous discussions on employee compensation and labor cost were mostly from the perspectives of macro economy,policy,micro finance and corporate governance.However,this paper linked the macro social background with the micro enterprise behavior,providing new research ideas and directions for the related discussion of the micro enterprise behavior,which may contribute to the development of discipline theory.The significance of the subject theory and management practice in this paper lies in :(1)On the theoretical level,this paper expands the research field of labor cost and contagion effect,deepens the understanding of the current situation of China's labor market,and lays a foundation for subsequent studies on labor cost.(2)From the perspective of practice,this paper analyzes the current situation of China's labor market and the influencing factors of labor cost,providing theoretical support for China's industrial policy adjustment and enterprise compensation planning.