Research On The Impact Of Local Government Debt Issuance On Enterprise Labor Employmen

At present,China is at a critical stage influenced by factors such as slowing economic growth,accelerating economic restructuring,changing industrial structure,rising international trade protectionism and the impact of COVID-19 epidemic,and the employment situation in China is grim.Employment is an important livelihood issue related to the healthy development of social economy and the prosperity of the country.How to promote high-quality full employment has become a key issue to promote high-quality economic development.Full employment of the labor force is conducive to releasing China’s economic growth potential,promoting income growth,narrowing the income gap and promoting common prosperity.However,the current phenomenon of insufficient employment in China is mainly manifested in the reduction of wages and employee benefits by enterprises,the risk of macroeconomic governance caused by the surge in government debt,and the lack of promotion of emerging industries and innovative employment development.With the expansion of debt issued by local governments,debt financing has affected many aspects of economy and society,among which the impact on corporate financing constraints is closely related to China’s employment environment.In order to explore the reasons and theoretical mechanism behind this influence,and formulate feasible policies on debt issuance and high-quality employment,this paper discusses the influence of local debt issuance on enterprise employment from both theoretical and empirical aspects,and draws relevant research conclusions.Based on the perspective of corporate financing constraints,based on the evidence of natural experiments of listed companies,this paper preliminarily establishes the logical relationship between local government debt issuance and corporate labor employment,and puts forward the research hypothesis of this paper.In the process of hypothesis testing,using the two-way fixed effect model,this paper selects the panel data of companies from CSMAR database from 2008 to 2018 to empirically analyze the relationship between local government debt issuance and enterprise employment.It is found that the financing restriction of enterprises constrained by local government debt issuance plays an important role in restraining the employment of enterprise labor force.This conclusion still holds after a series of robustness tests,such as changing the core explanatory variable measurement method,changing the model setting,eliminating special samples,and instrumental variable method.Specifically,the local government debt issuance inhibits the employment of enterprises,which is mainly manifested in the financing constraints caused by the competition between enterprises and local governments.The mechanism analysis shows that the distorted allocation of credit mechanism and the increased price competition of debt rate of return on capital are the important channels for local government debt issuance to affect the financing constraints of enterprises,thus inhibiting the employment of labor force and affecting underemployment.Heterogeneity analysis shows that in the low level of regional finance and economic development,small and medium-sized enterprises and non-state-owned enterprises,the inhibitory effect of local government debt issuance on the employment situation of enterprises is more obvious.The conclusion of this paper is helpful for the country to reasonably guide local governments to issue debts in the process of maximizing the self-financing and self-development ability of each region.At the same time,prevent and resolve a series of problems and risks caused by the surge in local government debt scale under the background of stimulus policies;Secondly,it will help enterprises to pay attention to the rational allocation of labor force,and pay attention to the importance of corporate financing constraints being affected by local government debt issuance;Finally,it has certain theoretical and practical significance to provide policy reference for promoting the government to take various measures to improve the employment rate and implement targeted employment policies.