The Effects Of Endowment Insurance Payment Rate On Wages And Working Hours Of Urban Workers

In recent years,with the context of tax reduction and fee reduction,China has lowered the enterprise endowment insurance contribution rate many times,but the contribution rate of enterprise endowment insurance is still significantly higher than other countries.The high contribution rate of endowment insurance increases the labor cost of enterprises,which is not conducive to the operation and development of the enterprise and the promotion of international competitiveness.Therefore,the studies in the existing literature show that appropriately reducing the contribution rate of endowment insurance reduces the employment cost of enterprises and improves the production efficiency of enterprises.However,the research on the contribution rate of endowment insurance to labor market performance is mainly from the perspective of labor demand,while the research from the perspective of labor supply is less.Based on the China Household Finance Survey in 2015 and 2017,this paper takes the adjustment of endowment insurance contribution rate in 2016 as a natural experiment,and studies the impact of endowment insurance contribution rate on urban workers’ wages and working hours by using Differences-in-Differerences method(DID).The research results show that the decrease in the contribution rate of enterprise endowment insurance has a significant positive impact on the monthly and hourly wages of urban workers,and significantly reduces the working hours of urban workers every day,which means that the decrease in the contribution rate of endowment insurance not only improves the wage level of urban workers,but also reduces the working intensity of urban workers.This paper further classifies urban workers into more detailed groups and regresses them according to different genders.The study found that the decrease of endowment insurance contribution rate has a significant positive relationship to the wages of male urban workers,and a significantly negative relationship to working hours.The average working hours per day is reduced by 0.351 hours,but it has no significant impact on female urban workers,which implies that male urban workers are more sensitive to the adjustment of endowment insurance contribution rate compared with female urban workers.According to the types of units that urban workers belong to,they are divided into public sectors and non-public sectors.It is found that the decrease of endowment insurance contribution rate has a significant positive impact on the wage growth of urban workers in both public and non-public sectors,and the growth rate of hourly wage is greater than that of monthly wage,while the public sector wage growth rate is larger than that of the non-public sector.The decrease in endowment insurance contribution rate has a significant impact on the working hours of urban workers in public sectors,with an average decrease of 0.398 hours per day,but not on the working hours of urban workers in non-public sectors.The research of this paper is helpful to understand the policy effect of implementing the endowment insurance contribution rate on different urban workers,and is helpful to deepen our understanding of the wage determination and labor supply behavior of urban workers,fully understand the policy effect of the contribution rate of endowment insurance on different urban worker.The research in this paper will help the government to design and evaluate the endowment insurance policy.