TITLE:
A Study on the Labor Cost of Chinese Listed Companies—Based on the Perspective of Labor Contract Law
AUTHORS:
Qiong Zhang
KEYWORDS:
Labor Protection, Labor Cost, Cost Stickiness
JOURNAL NAME:
Modern Economy,
Vol.7 No.2,
February
19,
2016
ABSTRACT: Given the background of enterprises facing with rising labor costs and
shortage of human resources, we use a large sample of firms in China during
2004-2011 to test the sticky characteristic of labor cost. We also test the
effect of labor protection on cost stickiness based on the implementation of
Labor Contract Law. We find that the labor cost of listing firms in China is sticky,
and the stickiness of state-owned
enterprises is higher than that of non-state-owned enterprises. Furthermore, implementation
of Labor Contract Law increased labor cost stickiness, both state-owned enterprises and non-state-owned enterprises.