Do VAT cuts help stabilize employment? Evidence from China?s VAT rate reform

被引：4
|
作者：
Liu, Xiufen [1 ,5 ,6 ]
Fang, Hongsheng [1 ,2 ]
Zhao, Lexin [1 ]
Xu, Wenli [3 ,4 ]
机构：
[1] Zhejiang Univ, Sch Econom, Hangzhou, Peoples R China
[2] Zhejiang Univ, Inst Fiscal Big Data & Policy, Hangzhou, Peoples R China
[3] Anhui Univ, Sch Econom, Hefei, Peoples R China
[4] Anhui Univ, Anhui Res Ctr Ecol & Econom Dev, Hefei, Peoples R China
[5] Hangzhou City Univ, Sch Business, Hangzhou, Peoples R China
[6] Hangzhou City Univ, Inst Digital Finance, Hangzhou, Peoples R China
来源：
ECONOMIC ANALYSIS AND POLICY | 2023年 / 78卷
关键词：
VAT rate; Tax reduction; Employment; Labor demand; VALUE-ADDED TAX; CAPITAL-SKILL COMPLEMENTARITY; DIVORCE LAWS; INVESTMENT; IMPACT; COMPETITION; POLICY;
D O I：
10.1016/j.eap.2023.03.005
中图分类号：
F [经济];
学科分类号：
02 ;
摘要：
This paper develops a simple model to study the influence of China???s value-added tax (VAT) rate reform on employment. The model delivers important information about how monopoly and unskilled labor enhances the substitution of non-labor factors for labor. Taking China???s VAT rate reform as a quasi-natural experiment, this paper examines the model???s predictions with a difference-in-differences (DID) approach. The results suggest that China???s VAT rate reform has a negative employment effect and that the decrease in the relative price of non-labor inputs to labor serves as an important channel through which non-labor factors squeeze labor out. Reducing the degree of market monopoly and improving the skill level of labor can effectively mitigate the adverse impact of the reform on employment. ?? 2023 Economic Society of Australia, Queensland. Published by Elsevier B.V. All rights reserved.
引用
收藏
页码：190 / 207
页数：18
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