Research On The Impact Of The Reduction Of Basic Endowment Insurance Fees On Employment Of Urban Workers Under The Background Of Epidemic

Since the establishment of China’s social endowment insurance system,the contribution paid by enterprises has always been the most significant source of income for pension insurance funds,laying the financial foundation for the continuous operation of the system.Nevertheless,the country’s payment levels remain higher than most countries after the 2019 proposal that localities could reduce the enterprise endowment insurance contribution rate to16%.Excessive contribution rate,as one of the key reasons for pushing up business costs of corporations,is likely to cause companies to pass on the burden of payment through reducing manpower,thus creating greater employment pressure.The sudden outbreak of COVID-19 in2020 not only disturbed people’s daily life but also jeopardized economic development worldwide.Because employment is the central issue in our economic and social development,our job market is bound to suffer from higher stress against the backdrop of the global epidemic.To sum up,lowering the endowment insurance contribution rate borne by enterprises is one of the efficient ways to keep labor costs down and one crucial tool to defuse the employment tension in the era of COVID-19.Based on explaining the current employment situation in China,this paper explores the crowding-out effect of pension contribution rates on employment,and empirically analyzes the relationship between enterprise contribution rate and urban employment by using panel data.The study found that corporate pension contributions bring a negative effect on urban employment,with urban employment falling by 0.093% while the other raising by 1%.Among them,the central region shows the minimum crowding out effect on employment,followed by the east region,while the employment of west China is crowded out at the maximum level.Therefore,to reduce the burden and increase the efficiency of enterprises,stimulate market vitality,and alleviate structural unemployment,the government should positively implement the rate reduction policy according to practical situations and reasonable conditions.This paper is mainly divided into five parts.The first part is the introduction part,the second part is the relevant theory part,the third part is the model construction part,the fourth part is the empirical part,the fifth part summarizes this paper,and puts forward policy suggestions on this basis.