Deregulation of Interest Rate Controls,Credit Risk Pricing,and Enterprise Employment Absorption——A Quasi-natural Experiment Based on the Removal of the Loan Interest Rate Floor
Enterprises act as reservoirs for employment absorption,and meeting their financial needs is essential for achieving employment stability.Utilizing data from A-share listed companies in China from 2006 to 2022,and leveraging the removal of the loan interest rate floor as a quasi-natural experiment,this study employs the Difference-in-Differences(DID)method to examine the impact of deregulating interest rate controls on enterprise employment absorption.The findings indicate that deregulation of interest rate controls increases the scale of enterprise employment absorption by 14％.Mechanism analysis reveals that deregulation facilitates credit risk pricing and risk allocation,thereby reducing financing costs,increasing financing availability,and alleviating cash flow constraints,ultimately promoting employment.Heterogeneity analysis demonstrates that the positive effect of deregulation on enterprise employment absorption is more pronounced in regions with weaker government intervention,intense financial industry competition,and in the eastern and central regions,as well as in enterprises with fewer financing constraints,private enterprises,and labor-intensive enterprises.Further analysis suggests that deregulation also drives increased investment in machinery and equipment,enabling enterprises to absorb more highly skilled labor and creating a capital-skill complementarity effect.The study's conclusions provide valuable insights for deepening financial market reforms and achieving high-quality,full employment.
万方数据
