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Does the increase of labor protection intensity promote regional economic growth? Evidence from China

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Abstract

Using inter-provincial panel data from 1998 to 2012, and taking the implementation of China's new “Labor Contract Law” in 2008 as a quasi-natural experiment, this study uses the differences-in-differences empirical method to quantitatively analyze the impact of changes in labor protection intensity on local economic growth. The empirical results show that the enhancement of labor protection intensity can effectively promote economic growth in regions with higher levels of human capital, especially the eastern developed regions in China. Further research shows that this promotion effect is more obvious for the growth of the tertiary industry.

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Funding

Chongqing Social Science Foundation Project: Research on harmonious labor relations thought of socialism with Chinese characteristics in the new era (2021YBCS39); Science and technology project of Chongqing Education Commission: (KJQN202000905); Chongqing Education Commission humanities and social sciences research project(21SKGH134)/ (21 SKGH141) and (SISU202157) The 13th Five-Year Education Planning Project (2018-GX-317).

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Authors and Affiliations

  1. College of Finance and Economics, Sichuan International Studies University, Chongqing, 400013, China

    Xinpeng Xu, Fuxia Gao, Yiming Xu & Yuchao Wang

  2. Chongqing Intellectual Property School, Chongqing University of Technology, Chongqing, 400054, China

    Xiaopeng Fu

  3. School of Public Policy and Administration, Chongqing University, Chongqing, 400044, China

    Yaqian Li

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  1. Xinpeng Xu
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Correspondence to Xiaopeng Fu.

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Xu, X., Fu, X., Gao, F. et al. Does the increase of labor protection intensity promote regional economic growth? Evidence from China. Electron Commer Res 23, 155–173 (2023). https://doi.org/10.1007/s10660-022-09604-1

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