The research project "Research on the impact of declining social insurance rate on enterprise productivity" by Dr. Deng Yue of the IQDS received financial support from the National Social Science Foundation in 2017. This is the only youth project to be approved by the in the field of economic management at Wuhan University.
The paper made a in-depth discussion of the impact and mechanism of the adjustment of social insurance rate on enterprise productivity. It made a reasonable estimate of the adjustment space, providing reference for the local governments to formulate and adjust policies of scientific and reasonable social insurance rate and related systems.
Project of "Research on the impact of declining social insurance rate on enterprise productivity focused on declining social insurance rate of enterprises under the national policy "Reduce Production Capacity, Inventory and Leverage, Reduce Cost and Improve Shortcomings”. Based on China Employer-Employee Survey (CEES) Database, it made a comparative analysis of the actual contribution rate of enterprises before and after the adjustment of social insurance rate as well as the changes of employee participation rate and insurance coverage.
In order to further explore the mechanism of declining insurance rate’s impact on enterprises, the project adopted two indexes of whole factor productivity and labor productivity to measure the productivity of the enterprises. It discussed about the impact of investment effect and human capital investment effect on the enterprises. On this basis, the intervention effect model was used to measure the modest space for the reduction of insurance rates in different regions.