The Refund of Term-end VAT Policy Effects on Employment——Evidence on No.70 Fiscal and Tax Notification in 2018
This paper studies the refund of term-end VAT policy effects on employment decisions.The DID test based on No.70 fiscal and tax noti-fication in 2018 shows that the test sample companies have significantly improved the employment and total compensation after the policy promulgation compared to the control sample,but the average compensation is not influenced.The channel test finds that the alleviation of financial constraints is an im-portant mechanism.The above employee stimulation effect is more significant in enterprises in higher degree of marketization regions.Further test finds that the impact of the VAT rebate policy on high-cost labor investment is not significant,but the policy effect exists among different functional employees.In addition,the capital-labor structure has not changed significantly as a result of the policy.Our paper shows that the capital occupation formed by the input VAT has an obvious negative impact on employment.
万方数据
