Abstract
This paper empirically examines the relationship between the pressure of social security contributions and employment decisions regarding labor outsourcing among non-financial, non-insurance listed companies in China's capital market, under the country's unique institutional background. The findings indicate that higher social security contributions lead companies to lean more towards labor outsourcing decisions. Heterogeneity analysis shows that the positive impact of social security contributions on the inclination for labor outsourcing is primarily found in non-state-owned enterprises and manufacturing industry samples.
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