Social Premiums Research Articles

근로장려금과 고용안전망 연계 필요성과 과제

The Earned Income Tax Credit (EITC) was significantly expanded in 2019, making it the main income support scheme for the working poor. This paper analyzes whether the EITC improves labor market outcomes for recipients. We find no evidence that it increases work by increasing the number of days or hours worked, or increases earnings. There is a need to provide the employment safety net to help the EITC recipients get better jobs. First, 30% of the EITC recipients look for a job. There is a need to encourage them to participate in the National Employment Support System, which provides both income support and employment service for the vulnerable job seekers who do not receive unemployment insurance benefits. Second, only 40% of the EITC recipients are enrolled in social insurance. It is necessary to strengthen social protection against the social risk by supporting social insurance premiums for the EITC recipients.

Directors with foreign experience and employee protection

AbstractThis study investigates the impact of managerial foreign experience on corporate employee protection. Using 30,644 firm‐year observations from 3972 Chinese listed firms from 2008 to 2020, I find that compared with firms without returnee directors, firms with returnee directors pay more social insurance premiums and implement better employee treatment policies. The positive relationship is stronger when returnee directors acquire foreign work experience (as opposed to educational experience), gain experience in countries with strong labor protection, serve as a CEO or a chairperson in the Chinese firm, and have high media visibility. The cross‐sectional analysis shows the effect of directors with foreign experience on employee protection is greater in non‐state‐owned firms, and returnee directors improve employee protections more when the employees have relatively weak discourse power. Additional analysis finds that returnee directors improve employee training and occupational safety, and they help balance social insurance generosity and employment levels. The results are robust after addressing the potential endogeneity problems. My results suggest a potential way to transfer better labor protection practices from developed to emerging markets.

Suggestions for Improvement and Applicable Dispute about “Not Paying Social Insurance Premiums for Workers by Law”

Suggestions for Improvement and Applicable Dispute about “Not Paying Social Insurance Premiums for Workers by Law”

Encourage Fathers’ Use of Paternal Leave in Vietnam: the Labor Contract Characteristics and Fathers’ Behavior

Vietnam reformed the maternity regime in 2014, in which male employees currently paying social insurance premiums whose wives give birth to children are entitled to a maternity leave of from 5 to 14 working days. This is widely regarded as a landmark reform that has shifted the Vietnam maternity regime toward a model that is more supportive of the compatibility of work and family life. In this paper, we show that fathers' leave-taking was only about 5,2% of total male employees currently paying social insurance premiums whose wives give birth, even when fathers are on leave period, they spend very little time with their children; despite drastic changes in gender norms in Vietnam, as well as short periods of leave, may have long-lasting effects on fathers’ involvement in newborn care and housework. We also find that groups of fathers, who are cadres and civil servants, as well as those with permanent working contracts profited more strongly from changing their behavior, while self-employment and temporary work lower fathers’ chances of taking leave. Finally, we make some compelling proposals to increase the number of fathers taking parental leave.

사회적기업의 제도 현황과 부패방지 방안에 대한 연구

Korea promotes, supports, and regulates social enterprises through the Social Enterprise Promotion Act. In this Act, a “social enterprise” refers to a company that engages in business activities such as production and sales of goods and services while pursuing social goals such as improving the quality of life of local residents by providing social services or jobs to the underprivileged or contributing to the local community. It is an enterprise. In general, businesses pursue profit, while social enterprises pursue profit, but they also have the purpose of solving social problems or creating social values through business activities, so they receive various support from the government or local governments.
 However, social enterprises engage in corrupt practices in various fields, such as overcharging labor costs, fraudulent receipt of subsidies for job creation projects, accounting fraud, improper use of support funds, fraudulent subsidies, fraudulent business development expenses, operational corruption, fraudulent receipt of social insurance premiums, and use of subsidies unrelated to business purposes. are doing
 Due to such corruption, the value of social enterprises is being devalued, and it can be evaluated that corruption is so widespread that the government has discussed reducing subsidies to social enterprises.
 In Ⅱ below, the concept, characteristics, and typology of social enterprises were reviewed, and the goals and roles pursued by social enterprises, the method of creating social values, and the sustainable social influence of social enterprises were considered. In Ⅲ, what is corruption in social enterprises is defined, and the causes of corruption, cases of corruption, and problems caused by corruption are mentioned. In Ⅳ, the regulation on sanctions in case of corruption was reviewed in the Social Enterprise Promotion Act, and the revision of this law was presented to prevent corruption, and solutions were presented by dividing it into internal and external measures.

Actual Situation of Salary as the Basis for Paying Social Insurance Premiums of Employees in Enterprises in Vietnam

In Vietnam today, the business sector is growing stronger and making an important contribution to the economy. However, in the process of implementing the law on social insurance payment, the compliance level of enterprises with the salary as the basis for payment of social insurance is still low, affecting the legitimate interests of employees and limiting revenue to the social insurance fund. In this article, the author has used a combination of documentary research methods, methods of collecting data from secondary sources, and at the same time used descriptive statistics, synthetic analysis methods and normative research methods to clarify the legal provisions on wages as the basis for payment of social insurance and the actual situation of wages as the basis for payment of social insurance premiums of employees working in various types of enterprises in Vietnam.

Impact of ability and willingness to pay for health insurance in Indonesia

Link of Video Abstract: https://youtu.be/w1aBTIalQSYOne way the community is financially protected from unforeseen health risks is through health insurance. The ability and willingness to pay for health insurance has been linked to improvements in public health, including better access to healthcare services, better public health, and financial protection from health risks, according to earlier research. Since 2014, Indonesia has had a government health insurance scheme under the National Health Insurance (JKN) program with the goal of enhancing community welfare and health access. However, despite the benefits provided by the JKN program, many people are still not registered and have not received benefits from the program. Recent studies have shown that high health insurance costs remain the main obstacle for people with low income to buy health insurance. The aim of this study was to identify the ability and willingness to pay for social insurance premiums in the framework of the National Health Insurance System. Utilizing the terms "impact of ability," "willingness," and "health insurance," the database search includes Google Scholar, ScienceDirect, and PubMed. The last step is to choose the articles that meet the criteria, which include being published between 2011 and 2022 and having the complete text accessible. The criteria for including 13 articles were met. According to the review's findings, the majority of publications link knowledge, income, how people view health care, and family support to health insurance payment compliance. Additionally, there are barriers and constraints affecting participation in National Health Insurance (NHI), such as registration procedures, benefits received, premiums, and private insurance ownership. There are several factors that affect compliance with health insurance payment, including knowledge, income, perception of health services, and family support.

Unintended Consequences of Social Insurance Law on Stock Price Crash Risk: Quasi-Natural Experimental Evidence from China

ABSTRACT This study studies whether the Social Insurance Law implemented in 2011 affects the stock price crash risk. Using the data of Chinese listed companies from 2006 to 2018, this study uses the difference-in-difference method to show that the Social Insurance Law significantly reduces stock price crash risk, and when the tax department collects social insurance premiums, this inhibitory effect still exists, which depends on its taxation efforts. Mechanism analysis find that Social Insurance Law reduces agency costs and improves the transparency of enterprises, indicating that the behavior of enterprises to hide and hoard bad news is reduced. Finally, these effects are more pronounced for enterprises with poor corporate governance, enterprises in regions with poor marketization, and enterprises with lower media attention. Overall, this study provides new insights into reducing systemic financial risks and improving financial market stability.

Reducing social security contribution rate on the financial performance of state-owned and non-state-owned manufacturing industries in the post-epidemic era.

Social insurance is an essential component of a contemporary social security system since it protects people's fundamental well-being, but it also incurs a heavy cost for businesses. If social security costs are excessively high, business profitability will suffer, and innovation will be discouraged. The most affected companies would be those in labor-intensive industries and medium-sized enterprises. Chinese businesses have suffered severe losses as a result of the COVID-19 outbreak. Given the circumstance, China enacted additional tax cuts and preferential social insurance premium plans. This article suggests a lower ratio of contribution as a strategy to cut the cost of social insurance premiums for businesses, given the growth of the social security fund in recent years and the proportion of participants to recipients in pension funds. It would be possible to increase firm profitability and lessen the impact of COVID-19 on industries by minimizing this operation burden. In order to compare the financial performance of state-owned manufacturers (SOMs) to that of their non-state-owned peers, who have a lower ratio of contribution, this study uses a multiple regression model. The ratio of contributions was inversely correlated with an enterprise's financial performance. In other words, financial performance will improve as the ratio of contribution lowers; nevertheless, this effect is more pronounced in SOMs. The final section of this study proposed optimized approaches for social insurance premiums reform.

The determinants of longevity: The perspectives from East Asian economies.

The determinants of longevity: The perspectives from East Asian economies.

Mission Accomplished? Balancing Market Growth and Moral Legitimation in the Fair Trade Moral Market

Mission Accomplished? Balancing Market Growth and Moral Legitimation in the Fair Trade Moral Market

Research on the Impact of a New Round of Tax Reduction and Fee Reduction Policies on the High Quality Development of Small and Medium-sized Enterprises

As a powerful measure to deepen the supply-side structural reform, tax reduction and fee reduction policies play an important role in promoting the high quality development of small and medium-sized enterprises(SMEs).This paper selects 582 SMEs listed on China's A-share market from 2018 to 2021 to measure their high quality development level and explore the policy effect of the new round of tax reduction and fee reduction policies implemented since 2018.The results show that the reduction and exemption of value-added tax(VAT) and social insurance premiums are conducive to improving the high quality development level of SMEs, and the impact of income tax reduction on the high quality development level of enterprises is not significant, and the income tax burden between enterprises is quite different. Therefore, this paper puts forward some policy suggestions to further implement of the tax and fee reduction policies, consolidate the achievements of the existing tax and fee reduction policy, improve the tax structure of enterprise VAT and social insurance premiums, implement differentiated income tax reduction and exemption policy, and guide the high quality development of SMEs.

Social insurance premiums and corporate cash holdings: Evidence from social insurance law in China

Corporate liquidity management is closely related to firms’ labor costs. The relationship between cash holdings and labor costs proxied by social insurance premiums is underexplored in existing literature. We explore the enactment of the 2011 Social Insurance Law in China to investigate how social insurance premiums affect corporate cash holdings policy. We find that higher social insurance premiums lead to larger cash holdings for labor-intensive firms through the increased operating leverage. Our findings are robust to falsification analysis, placebo tests, and alternative proxies for key variables. The positive effect is stronger for firms with better legal environments, state-owned enterprises, and those with more migrant workers. In addition, the excess cash holdings by labor-intensive firms increase future operating performance and firm value. Overall, our findings are in line with the precautionary theory.

Impact of the COVID‐19 pandemic on provision of HIV/AIDS services for key populations

The COVID‐19 pandemic has aggravated the obstacles for HIV/AIDS programs in limited‐resource countries like Vietnam to achieve the HIV/AIDS‐related Sustainable Development target. The paper aims to evaluate the impact of the COVID‐19 pandemic on the provision of HIV/AIDS services—a pathway to achieving universal health coverage for key populations (KPs). Employing mix‐methods, we conducted a desk study, one focus group discussion, and ten in‐depth interviews with participants from the Ministry of Health, Provincial Centres for Disease Control, and HIV/AIDS‐related facilities. The results showed the reduced coverage of KPs with access to prevention (i.e., harm‐reduction services, counselling), testing, and treatment services (i.e., antiretroviral therapy, isoniazid preventive therapy). It also showed the reduced coverage of quality essential services, mainly in skipping consultation and testing, delaying un‐emergency services, and redirecting KPs to non‐HIV‐specialised facilities. There was a gap in providing support for mental health, violence/abuse, and reproductive health. Financial risk protection for KPs was reduced due to uncertain local budget allocation; decreasing their ability to pay for HIV/AIDS‐related services and social health insurance premiums; and increased out‐of‐pocket payments to comply with the COVID‐19 control measures. This paper provides recommendations for strategic planning to ensure universal health coverage for KPs in the post COVID‐19 era, especially for limited‐resource countries like Vietnam.

ASIL İŞVERENİN VERGİ TEVKİFATINDAN SORUMLULUĞU

According to article 2 of the Labour Code, the principal employer shall be jointly liable with the subcontractor for the obligations ensuing from Labour Code and from employment contracts of subcontractor's employees or from the collective agreement to which the subcontractor has been signatory. For social insurance premiums, joint liability is regulated in the Code No. 5510. However, although employer and wage are defined in tax laws, the principal employer is not defined. In addition, no obligation has been established on the principal employer regarding the receivables of the subcontractor workers. In accordance with the principle of legality, the principal employer is not the employer of the subcontractor's workers in terms of tax law. Because it is out of the question to recruit and operate by giving orders and instructions. Otherwise, there will be collusion. While the principal employer is jointly and severally liable for the wages and premiums of the subcontractor workers, it will not be able to stoppage income tax due to the lack of clear regulation. It is the sub-employer, who is the “employer”, who is responsible for withholding income tax from wages. Until this gap is filled by the legislator, the nature of the payment made by the principal employer to the subcontractor worker will not be counted as wage within the meaning of the Income Tax Code.

ESG, liquidity, and stock returns

We examine the effect of environment, social, and governance ( ESG ) score on stock returns in the United Kingdom (UK). Consistent with Hong and Kacperczyk (2009), Bolton and Kacperczyk (2021), and Pedersen et al. (2021), firms with lower ESG earn higher returns than those with higher ESG . The environment and social premiums are more pronounced than the ESG premium. To understand the premium, we show that the ESG premium is significant for low liquidity securities but not for high liquidity securities, which suggests that ESG is likely associated with stock liquidity. • We examine the effect of ESG score on stock returns in the United Kingdom. • Firms with lower ESG earn higher returns than those with higher ESG. • The ESG premium is only significant for low liquidity securities. • Our work has useful implications for investors and managers.

The Impact of Social Insurance Law on Corporate Innovation: Evidence from a quasi-natural experiment

The implementation of China's Social Insurance Law initiated changes in the management and collection of social insurance premiums. The effect of this collection related to labor cost and employee welfare on innovation remains unexplored. We use a difference-in-differences model based on unique data in China and reveal that social insurance premiums collection following the implementation of Social Insurance Law appears to significantly contribute to innovation. Both labor cost and employee welfare effects are inducement mechanisms. Additional tests suggest that the relationship between Social Insurance Law and innovation is more pronounced for state-owned enterprises, firms with a superior legal environment, and firms in more competitive industries. The above findings offer new insights into the real impact of the social insurance system reform on advancing China's economic development and suggest strategies to drive innovation through the implementation of the Social Insurance Law.

Supporting businesses recovery after Covid-19 through social insurance exemption and reduction mechanisms: Legal barriers need to be removed

While participating in social insurance is a legitimate right of employees, it is also an important cost in business’s operation. During an economic crisis, this cost becomes much more costly for enterprises. According to a survey report prepared by the Board of Research on Private Economic Development (also known as Board IV, which belongs to the Prime Minister's Advisory Council for Administrative Procedure Reform) on the impact of the Covid-19 epidemic on production and business activities of enterprises conducted in 2020, the immediate supporting solution that companies proposed the most and expect the Government to prioritize and focus on is: Implementing particular policies on taxation and also social insurance exemption and reduction during the epidemic period for businesses heavily affected by Covid-19. However, according to current legal regulations, the mechanism to amend the rate of social insurance premiums still has many problems to be solved. In this article, the author focuses on studying the impact of Covid-19 on businesses in Vietnam and legal barriers related to social insurance exemptions and reductions, and then proposes solutions to the problems posed.

Pension Security Level of Urban Employees in China Based on CHIPs

In 2019, the Chinese government has put forward comprehensive plan for reducing social insurance premium rate, which will affect the measurement of the pension security level. In order to evaluate the pension level, this paper uses CHIPs data from 1988 to 2018 to calculate “empirical” pension replacement rate by “empirical” method based on different wage calibers. The result shows that the pension replacement rate and income replacement rate of urban employees have gradually declined in the past 30 years. The pension level of nonprivate employees is lower than that of insured employees, and that of insured employees is lower than that of full‐scale employees. The pension level of male, high‐income groups, the older generation, organs, and institutions is much higher than that of female, low‐income groups, the younger generation, and enterprises relatively. Compared with other countries, the pension replacement rate of urban employees in China is not low, but the income replacement rate is relatively low. This paper makes an in‐depth analysis of the actual pension level under the new policy. As a result, it is necessary to vigorously develop multilevel and multipillar pension system such as enterprise annuity, occupational annuity, and commercial pension insurance, so as to improve the pension level of urban employees.

Government Employees of Bangladesh and their Willingness to Pay for Social Health Insurance

Determining the health insurance premium is the most important aspect in providing social health insurance. In measuring the rate, it is needed to calculate the cost of providing the service. One possible methodological tool of calculating the cost is the contingent valuation method for the evaluation of the consumers’ capacity and their willingness to pay for the services. This study applied a Logit model, having binary depended variable with follow up dichotomous choice at different premium levels, to estimate the factors associated to joining the social health insurance scheme. The study found that 80.1 percent of the government employees of Bangladesh wants to pay on average 6.69 percent of their basic salary as social health insurance premium. The result shows that younger peoples are less willing to pay while older people are more willing to pay for social health insurance. The study also revealed that the area of residence and no of visit to doctor play a key role in determining the willingness to pay. This study should help the policymakers to formulate and implement the social health insurance scheme in Bangladesh.