Can rising labor costs boost private sector R&D investment? : Evidence from a survey of Chinese private firms
This paper constructs a double difference model (DID) based on the China Private Enterprise Survey (CPES) data over the period 1995–2019, combined with the 2005 national census data and considering the policy shock of the implementation of the Chinese government’s Minimum Wage Regulation in March 20...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Public Library of Science (PLoS)
2022-01-01
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| Series: | PLoS ONE |
| Online Access: | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9351998/?tool=EBI |
| _version_ | 1811344040364343296 |
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| author | Chuyao Deng Yang Liu Doudou Gu |
| author_facet | Chuyao Deng Yang Liu Doudou Gu |
| author_sort | Chuyao Deng |
| collection | DOAJ |
| description | This paper constructs a double difference model (DID) based on the China Private Enterprise Survey (CPES) data over the period 1995–2019, combined with the 2005 national census data and considering the policy shock of the implementation of the Chinese government’s Minimum Wage Regulation in March 2004, to investigate whether rising labor costs promote private firms’ innovation investment. Robustness tests are conducted using placebo tests and event study methods. The study finds that (1) rising labor costs significantly increase private firms’ R&D investment and that this effect has significant lag and cumulative effects; (2) private industrial firms (especially above-scale private industrial firms) are more affected by rising labor costs than other private firms and have more incentives to increase innovation investment; and (3) innovation investment of below-scale private industrial firms is not significantly affected by rising labor costs. |
| first_indexed | 2024-04-13T19:40:41Z |
| format | Article |
| id | doaj.art-0e31df84468741f9925eccaa8df397af |
| institution | Directory Open Access Journal |
| issn | 1932-6203 |
| language | English |
| last_indexed | 2024-04-13T19:40:41Z |
| publishDate | 2022-01-01 |
| publisher | Public Library of Science (PLoS) |
| record_format | Article |
| series | PLoS ONE |
| spelling | doaj.art-0e31df84468741f9925eccaa8df397af2022-12-22T02:32:53ZengPublic Library of Science (PLoS)PLoS ONE1932-62032022-01-01178Can rising labor costs boost private sector R&D investment? : Evidence from a survey of Chinese private firmsChuyao DengYang LiuDoudou GuThis paper constructs a double difference model (DID) based on the China Private Enterprise Survey (CPES) data over the period 1995–2019, combined with the 2005 national census data and considering the policy shock of the implementation of the Chinese government’s Minimum Wage Regulation in March 2004, to investigate whether rising labor costs promote private firms’ innovation investment. Robustness tests are conducted using placebo tests and event study methods. The study finds that (1) rising labor costs significantly increase private firms’ R&D investment and that this effect has significant lag and cumulative effects; (2) private industrial firms (especially above-scale private industrial firms) are more affected by rising labor costs than other private firms and have more incentives to increase innovation investment; and (3) innovation investment of below-scale private industrial firms is not significantly affected by rising labor costs.https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9351998/?tool=EBI |
| spellingShingle | Chuyao Deng Yang Liu Doudou Gu Can rising labor costs boost private sector R&D investment? : Evidence from a survey of Chinese private firms PLoS ONE |
| title | Can rising labor costs boost private sector R&D investment? : Evidence from a survey of Chinese private firms |
| title_full | Can rising labor costs boost private sector R&D investment? : Evidence from a survey of Chinese private firms |
| title_fullStr | Can rising labor costs boost private sector R&D investment? : Evidence from a survey of Chinese private firms |
| title_full_unstemmed | Can rising labor costs boost private sector R&D investment? : Evidence from a survey of Chinese private firms |
| title_short | Can rising labor costs boost private sector R&D investment? : Evidence from a survey of Chinese private firms |
| title_sort | can rising labor costs boost private sector r d investment evidence from a survey of chinese private firms |
| url | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9351998/?tool=EBI |
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