A Study of the Impact of the Policy of"Replacement of Business Tax by VAT"on the Employment of Individual Labor Force
Taking the individual labor force in the comprehensive social survey data of China from 2010 to 2017 as the research object,and based on the quasi-natural experiment of the policy of"Replacing the Business Tax with a Value-added Tax",this paper uses the double difference method to analyze its impact on the employment of individual labor force so as to evaluate the social welfare effect of the policies of reducing tax and fee,and investigates the specific mechanism of its impact on employment.The results show that the policy of"Replacement of Business Tax by VAT"will improve the employment probability of individual labor force and optimize the industrial structure in the pilot area.The impact of the"Replacement of Business Tax by VAT"policy on employment reached a peak in the second year of policy implementation,and then gradually weakened with the expansion of the scope of the pilot project.Hetero-geneity analysis shows that the impact of"Replacement of Business Tax by VAT"policy on individual employment of labor force is different among different education level,gender and household registration groups.The implementation of accurate policies is more conducive to promoting employment and optimizing the employment structure.This study is helpful to identify the mechanism of"Re-placement of Business Tax by VAT"affecting employment in theory,and provide a useful reference for the formulation and adjustment of employment promotion policies in practice.
Replacement of Business Tax by V ATLabor Force EmploymentIndustrial StructureGeneral Social Survey(CGSS)Data
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