Social Insurance Contributions Research Articles

The Lesser of Two Evils? Explaining Chinese Rural Migrant Workers’ Preference for On-demand Food Delivery Work With Reference to the Legal Framework

Drawing on a series of interviews with on-demand food delivery riders, who are rural migrant workers, this paper seeks to explain the workers’ decision to give up stable jobs in factories in favour of largely unregulated and precarious on-demand work. Focusing on those aspects of the legal framework which shape workers’ decisions, it presents the explanation under the dual banners of ‘income’ and ‘freedom and flexibility’. In terms of income, Chinese law often enables low factory wages and a reliance on overtime; migrant workers view social insurance contributions as a loss; issues with payroll and wage arrears are significant. In terms of freedom and flexibility, insufficient rest rights lead to inadequate breaks for assembly line workers and, compounded by unspecified ‘special working time’ permit physically unbearable shifts without extra compensation. Age and gender discrimination are prevalent both in factories and various sectors. In contrast, on-demand delivery work has relatively low barriers to entry.

Social Insurance Law and Corporate Performance in China

Social Insurance Contributions exert a liquidity constraint on firms and hence influence the performance of firms. By exploiting the enforcement of China's Social Insurance Law (SIL) in 2011 as a quasi-natural experiment, this paper studies the impact of social insurance contributions on the performance of enterprises through a difference-in-differences method. We find that SIL negatively affects the performance of firms, and this effect is more pronounced in firms with weaker cost-shifting capacity. Mechanism tests prove the liquidity constraints channel through the perspective of the firm’s cash flow, accounts payable, investment-cash flow sensitivity, and scale of operations. Our findings demonstrate that firms cannot fully mitigate the negative impact brought by Social Insurance Contributions.

Tax incentives and firm social insurance contributions: Evidence from China

Tax incentives are closely related to employees' income. The relationship between tax incentives and firm social insurance contributions is underexplored in existing literature. We construct a theoretical model to portray the impact of tax incentives on firm social security contributions and use China's accelerated depreciation policy for fixed assets (AD reform) to test it empirically. We find that the tax incentives effectively increase the social security contributions of firms. This effect is more pronounced in large firms, firms with high capital intensity, firms with strong bargaining power of employees, and firms with social security contributions levied by the social security department. Moreover, the AD reform promotes improvements in firm productivity and performance by increasing investment in machinery and equipment, increasing the rents shared by firms with employees, and thus indirectly boosting firms' social security contributions. Overall, Our findings contribute to a deeper understanding of rent-sharing between firms and employees, as well as enhancing our understanding of the effective incidence of taxes in less developed regions.

THE CONSEQUENCES OF RECEIVING SOCIAL INSURANCE ONCE IN VIETNAM

Objective: Social insurance policies have played a crucial role as a cornerstone in the social security system, contributing positively to social stability and the realization of goals for a prosperous, strong, fair, democratic, and civilized society. The current legal framework on social insurance in Vietnam stipulates provisions to ensure the rights of workers in all cases, including regulations regarding one-time social insurance cases. Although the significance of receiving one-time social insurance aligns with the legal provisions for each case, the lack of understanding among workers regarding the significance of social insurance policies or their deliberate acceptance of one-time social insurance can have unpredictable consequences for society, the social insurance system, and the workers themselves... The study builds on the situation of receiving social insurance in Vietnam and makes a case study of consequences for once workers receive social insurance suggesting solutions to mitigate the situation. Method: The study is based on a method to collect secondary data on the status of social insurance once received in Vietnam through data channels. This data is presented and analyzed by the descriptive statistical method (mainly in the form of tables and charts) that will see the situation for receiving social insurance once in Vietnam over time. In order to conduct the research, the method applied in this article is a qualitative method including: The systematic approach to the research materials, legal regulations related to the research; The integrated analysis method is used to analyze and synthesize the situation of receiving social insurance once in Vietnam; The objective methodology is used by the author to argue, the views of the individual, along with the combination of perspectives of other studies of nature to make a broad consensus about a particular problem. Results: The results of the study show that although social insurance policies were established to protect workers from income risk, they can lead a stable future life. Rules on one-off social insurance regimes can help resolve many special cases of workers. However, research shows that the number of people who choose to receive social insurance in Vietnam in the period of 2014-2023 has increased greatly. The increase of the number of people who receive social insurance once means the increase in the number of people leaving the system, making it difficult to achieve the goal of universal social insurance coverage in the spirit of resolution No. 28-NQ/TW of the XII Central Committee. Actual data suggest that on average 1 new person is entering social insurance, there is 1 old person leaving the system. The number of people withdrawn the following year was always higher than the previous year with an average annual increase of about 10%. The proportion of workers that have returned from social insurance benefits to continue their low participation in social insurance. In the period of 2016-2022, the country had more than 4.8 million workers requesting and resolving social insurance once. After receiving social insurance coverage once, approximately 1.3 million people returned to continue the social insurance penetration. Thus, the proportion of workers who have been remarried to social insurance benefits is 26%, and the remaining 74% of those who have received social insurance benefits once, corresponding to about 3.5 million who do not return to social insurance contributions, meaning that they are not guaranteed short-term benefits in the process of continuing labor such as sickness, maternity, occupational accidents, unemployment and long-term retirement. Conclusion: Receiving one-time social insurance benefits of workers will have some consequences for the social insurance system, for Society and Workers in the current context of Vietnam population aging trends lead to the number of people who do not have a monthly pension in Vietnam accounting for a large proportion of approximately 10 million people, this shows that the lack of sustainability of the Social Security system in general creates pressure for the community and the workers themselves will not be protected from the immediate benefits and long-term social insurance system.

Analysis of the payment discipline of trade-licence holders regarding social insurance contributions in the Slovak Republic

Abstract Guarantee of autonomy and stability of economic subjects from the government can be considered an important gauge of state security. Due to the financial, migration and energy crisis, we can observe a notable increase of social problems, which gives more importance to the policy for social security of the population. In this article we address the ongoing problem of an excessively high number of debts owed to the Slovak Social Insurance Agency in recent years. The social security system for trade-licence holders, its financing and the method of enforcement are briefly characterised. The development of the payment/non-payment of taxes and levies to the Social Insurance Agency is tracked against the background of legislative changes. In the conclusion, the ineffectiveness of selected legal provisions and processes of exacting taxes and social security contributions is evaluated in terms of their impact on the financial disciplines of trade-licence holders in the Slovak Republic. Severity of the deficit in money collected on social insurance poses a threat in several areas, such as providing social security to all citizens in some required quality as guaranteed by the government, or sustainability of the public finance which poses a risk for the whole economic security of the country.

Identifying and prioritizing factors influencing the social insurance contribution of unorganized workers

PurposeThe purpose of this study is to explore and prioritize the factors that determine the social insurance contribution of unorganized workers.Design/methodology/approachA two-stage procedure was adopted to recognize and prioritize factors influencing the social insurance participation of unorganized workers: first, crucial factors influencing unorganized workers’ contribution towards social insurance were identified by employing exploratory factor analysis, and in the second phase, the fuzzy analytical hierarchal process was applied to rank the specified criteria and then sub-criteria by assigning weights.FindingsFour broad factors were identified, namely, economic, political, operational and socio-psychological, that significantly influence unorganized workers’ contribution towards social insurance. Later findings revealed that the prime influencer of unorganized workers’ contribution is employment contracts followed by average earnings, delivery of quality services, eligibility and accessibility.Practical implicationsThe research findings are feasible as the basic propositions are based on real-world scenario. The identification and ranking of factors have the potential to be used as a checklist for policymakers when designing pension and social insurance for unorganized workers. If it is not possible to consider all, the criteria and sub-criteria assigned upper rank can be given priority to extend pension coverage for a large group of working poor.Social implicationsThe key factors driving social insurance contributions have been highlighted by studying the stakeholders’ perceptions at a micro level. By comprehending the challenges, there is a possibility of covering a large section of the working poor into social insurance coverage.Originality/valueThis paper is believed to be one of its kinds to acknowledge a combination of factors that determine the contribution of unorganized workers to social insurance. This study is an empirical investigation to prioritize the essential drivers of social insurance participation by low-income cohorts in the context of emerging countries. The present approach of employing fuzzy logic has also very limited use in social insurance literature yet.

Social insurance contribution and firms’ digital transformation: Evidence from China

ABSTRACT We examine the relationship between social insurance contribution and firms’ digital transformation by using the data of Chinese firms listed in the Shanghai Stock Exchange (SHSE) and the Shenzhen Stock Exchange (SZSE) from 2007 to 2017. We find that social insurance contribution has increased the degree of firms’ digitalization transformation. We also explore two important mechanisms through which the Social Insurance Law (SIL) affects firms’ digital transformation: cash flow effect and factor substitution effect. The results indicate that the positive impact of the social insurance contribution on firms’ digitalization is more significant for firms that are not state-owned, have smaller sizes, labour intensive, with low tax burden, low financial leverage, and low productivity. One important implication of our study is that firms’ digitalization can be a strategic choice made by labour-intensive firms to overcome rising cost of labour as a result of the SIL.

Flying around social security

INAIL and INPS is a decision about social security and insurance contributions. The case was brought against Ryanair, alleging that contributions were owed to the relevant Italian authorities where the documentation (an E101 certificate, now an A1 form) had not been properly completed by the employing airline. Aircrew personnel were employed under Irish employment contracts, but resided in Italy. Other than 45 minutes per day in the crew room at the airport in Bergamo, these staff were on board an aircraft registered in Ireland.

Socio-Economic Consequences and Mitigation Strategies of the COVID-19 Pandemic (Phases One and Two) on Rural Farmers in Ebonyi State, Nigeria

This study assessed the socio-economic consequences and mitigation strategies of the COVID-19 pandemic (phases one and two) on rural farmers in Ebonyi State, Nigeria. Specifically, the study described the socio-economic characteristics of rural farmers, assessed the perceived socio-economic consequences of the COVID-19 pandemic, and identified strategies used by farmers to cope with the effects of the COVID-19 pandemic. A multistage random sampling technique was employed to select 120 respondents from whom data were collected using a semi-structured questionnaire. Data collected were analysed using descriptive statistics and a mean score. The results showed that disruption in children's education ( =3.02), reduced purchasing power and increased rate of inflation across the country ( =2.83), a reduction in diversity and amount of food consumed ( =2.77), a reduction in the standard of living ( =2.68), a reduction of farm income ( =2.63), reduced off-farm employment and income ( =2.61), loss of lives ( =2.61), an increase in prices of food items ( =2.59), reduced religious activities and gatherings ( =2.57), reduction of remittance ( =2.54) and high foreign exchange rates ( =2.53) were some of the perceived socio-economic consequences of the pandemic. Meanwhile, 80.00% and 70.83% of the rural farmers reduced the quantity of meals eaten and prayed to God, respectively. It was recommended that government assistance programmes must be modified and augmented in order to better reach rural populations, many of whom do not have access to formal contributory social insurance systems.

Can social insurance contributions boost labor share?—Evidence from China’s social insurance law

Improving the factor income distribution is a crucial issue in the field of income inequality. Using large-scale data from China’s National Tax Survey from 2008 to 2016, this paper examines the impact of the implementation of the Social Insurance Law on firms’ labor share and its mechanisms. The results show that the Social Insurance Law significantly reduces firms’ labor share. Although it increases the firms’ social insurance rate and total amount of social insurance contributions, firms respond by reducing the number of employed labors and net wages to mitigate rising labor costs, as well as adopting alternative technological advancement patterns and capital deepening behavior, leading to a reduction in labor share. The weakening effects of Social Insurance Law primarily exist in non-SOEs, and MSEs, and firms faced with higher financial constraints and located in lower judicial quality areas. Our study suggests that stronger social security collection could account for the decline in labor share worldwide.

Discussing the Issue of Compliance with the Law on Paying Social Insurance Contributions by Non-State Enterprises in Vietnam

In Vietnam, although non-state enterprises account for a very high proportion of the total number of enterprises in the country, the rate of participation in social insurance for employees is still low, the amount of contributions to the social insurance fund is still limited, late payment of social insurance and evasion of payment of social insurance is common. This shows that non-state enterprises have not strictly complied with the law on social insurance contributions. The authors used the method of researching documents, collecting data from secondary sources, and using traditional statistical and analytical methods to clarify the legal provisions on Social insurance contributions and the status of compliance with the law on social insurance contributions by non-state enterprises in Vietnam (status of participation and contribution to social insurance funds, delayed payment of social insurance). On that basis, the authors propose some recommendations to strengthen compliance with the law on social insurance of non-state enterprises in Vietnam.

THE ROLE OF TAX INSTRUMENTS IN ENSURING EMPLOYMENT OF THE POPULATION (BY THE EXAMPLE OF FOREIGN EXPERIENCE)

The data presented in this article and the analysis on which it is based can serve as a basis for more thorough research in the field of improving the efficiency of the use of public finances to ensure employment of the population and the application of this experience in solving problems in the labor market of Uzbekistan. The study of labor resources on the example of the policy implemented in Croatia showed that the provision of benefits to young workers under the age of 30 in the systems of social payments, insurance contributions and personal income tax led to a significant increase in employment and a reduction in the outflow of migrant workers.

THE EFFECTS OF THE UNCONTESTED RETIREMENT DECISION WITHIN THE LEGAL TERM PROVIDED BY LAW

The principle of contribution is one of the fundamental principles of the public pension system in Romania. It assumes that the social insurance funds are established based on the contributions owed by the persons participating in the public pension system, and the social insurance rights are due based on the social insurance contributions paid.

Intention to Withdraw Lump-Sum Social Insurance in Terms of Demographics and Implications for Policy Revision in Vietnam

The main objective of this study is to identify, evaluate and analyze the intention to withdraw lump-sum social insurance of participants in the suburban areas of Hanoi. Previous studies have examined the influence of factors on intention to withdraw or retire early. However, demographic characteristics have received little attention, especially for the workers in the industrial zones. Through a quantitative survey study using convenience sampling with a small survey including 238 employees and workers currently working in the suburban areas of Hanoi, Vietnam. This study uses tools statistics, Cronbach's alpha analysis, factor discovery analysis, and ANOVA analysis. Research results show no difference in intention to withdraw money in different gender groups, but age, working sector, time participating in social insurance contributions, and income all show differences. The research results suggest some implications for policy agencies in amending the legal provisions on social insurance to increase the coverage rate for the social insurance system in Vietnam in the current context

Social insurance contributions and firms' debt concentration choice: A quasi-natural experiment based on the implementation of China's social insurance law

Using the implementation of China's 2011 Social Insurance Law as a quasi-natural experiment, we apply a difference-in-differences model to test the effect of social insurance contributions on firms' debt concentration choices. We find that when social insurance contributions increase, firms choose a debt structure with a higher concentration and fewer types of debt. Additional analyses show that this relationship is more pronounced in the sample in which firms have higher default risk, lower liquidation value, and lower accounting quality. A relatively concentrated debt structure enables firms to better negotiate with creditors to increase the probability of renegotiating debt with creditors and reduce the resulting bankruptcy liquidation. These results suggest that an increase in social insurance contributions leads to higher financial costs. Firms adjust their debt concentration when they need to renegotiate debt terms with their creditors in view of the higher probability of debt default. We examine the economic consequences of an increase in social insurance contributions from the perspective of a firm's debt concentration adjustment.

Social protection in times of plague and beyond

Introduction: As historically verified, countries with comprehensive, well designed social protection systems in place are better prepared to cope with large scale catastrophes of all kinds, always in such situation there is still a need for government interventions other than social protection and larger scale discretionary social protection or related interventions.Objective: The article presents the actions of countries to minimize the negative social effects of the COVID-19 coronavirus pandemic. The text is an attempt to answer how social security systems should be adapted to aforementioned crisis?Materials and methods: The text uses research methods such as: literature criticism and statistical analysis of data and revision of implemented state intervention policies based on reports of Organisation for Economic Cooperation and Development, International Labour Organizaton, European Foundation for the Improvement of Living and Working Conditions and International Monetary Fund.Results: 1) For social security institutions of key importance to ensure continuity of operations of all services of contributory social insurance as well of social assistance - was to ensure continuous payment of all benefits due and quick response to the new entitlement emerging. It is also necessary to ensure that all citizens are fully insured, regardless of the form of contract under which they perform work.2) In many countries, special emergency measures that extended coverage and increased benefits were taken by governments without clearly identifying the sources of funding and very often burdening social security funds with non-statutory expenses and affecting their long-term financial sustainability.3) In the longer run, there is a need to ensure universal health care coverage of the adequate quality, there is a need to develop policies which will secure at least minimum income security to all independently of their labour market status, forms of employment, sex, ethnicity or nationality.

The impact of declined social insurance contribution rate on enterprise total factor productivity: Evidence from China

This paper examines the effect of declined social insurance contribution rate on total factor productivity. Taking listed companies in China as observation samples, we show a positive association between the social security payment rate decrease and total factor productivity. Further, we find that financing constraints play a strengthening role in diminishing social insurance contribution rate to increase firm productivity, and the effect is more pronounced for companies with higher financing constraints. This results also suggest that the reduction of social insurance contribution rate on the change of total factor productivity varies from different regions, ownership and industries, among which the central and western regions, state-owned enterprises and manufacturing enterprises have a relatively stronger effect on the improvement of productivity. Our study empirically tests the policy effect of lowering the social insurance contribution rate, and provides important implications related to the government formulating the phased social insurance fee reduction policy.

THE ALLOWANCE FOR IDLE TIME

Following the identification of an emergency situation, a downtime allowance was introduced in the Republic of Latvia to compensate for the restrictions imposed on employers and the self-employed. Payment of the allowance is intended only for those employees and self-employed persons who have paid social insurance contributions in previous periods, thus small producers, craftsmen, small farms were left without social support, although their activities were severely restricted or banned altogether. It cannot be argued that the payment of the downtime allowance was linked to the payment of the allowance to dependent children, so that in future the allowance for children in emergency situations is not linked to any other type of support. The analysis of the conditions of downtime allowance shows that the criteria for receiving the allowance are very variable, which interferes employers from orienting themselves to the proposed solutions and applying them in a timely manner, moreover, excessive changes are not related to one of the basic principles of good legislation.

Tax burden on labour income of young persons

Systematic reduction of the tax burden on labour income in the period between 2014 and 2021 led to a drop in the average tax wedge by 4.2 percentage points. The analysis by age group shows that persons under the age of 30 experienced a larger reduction of the average tax wedge than the other age groups, primarily due to the introduction of reliefs for young workers in the systems of social insurance contributions and personal income tax.

The Impact of Social Insurance on Employment Quality

This paper empirically studies the impact of social insurance on employment quality based on China labor force dynamic survey in 2016. The results indicate that (1) social insurance significantly increases the annual salary of laborers and improves employment quality on the whole; (2) the impact of social insurance on the employment quality of laborers with different levels of education vary significantly, of which companies pass on their social insurance contributions to laborers with junior high school education and below, so social insurance remarkably reduces these people’s annual salary and job satisfaction; (3) social insurance significantly enhances employment quality by greatly improving the health of laborers.