Labor protection and private firms’ exports

Autor: Ruixiang Xiong, Qian Wan
Jazyk: angličtina
Rok vydání: 2022
Předmět:
Zdroj: China Economic Quarterly International, Vol 2, Iss 4, Pp 278-289 (2022)
Druh dokumentu: article
ISSN: 2666-9331
DOI: 10.1016/j.ceqi.2022.11.004
Popis: Using several micro-datasets and the difference-in-differences (DID) method, we attempt to study the effects of labor protection on private firms’ exports. We find that labor protection has enormous negative impacts on the exports of private firms. The impacts are more pronounced in cities with higher minimum wages and in more labor-intensive firms. The mechanism analysis shows that labor protection reduces the productivity of private firms and long-term employment. The findings suggest that governments need to implement supplementary measures to reduce the negative effects of labor cost increases induced by the Labor Contract Law.
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