Tax Incentives, On-the-job Training, and Human Capital Accumulation: Evidence from China

Binbin Tian, Chao Lin, Wenwen Zhang and Chen Feng

China Economic Review, 2022, vol. 75, issue C

Abstract: This study investigates the effects of an increase in the proportion of tax credit (IPTC) policy on firms' on-the-job-training expenses. We document that the IPTC significantly increases on-the-job training expenses; the result remains valid after a series of robustness tests. An analysis of heterogeneous effects shows that privately owned firms and small-scale firms are more susceptible to the IPTC's impacts than state-owned and large-scale firms. Finally, we find that the IPTC can improve the production efficiency of firms and promote firm performance and innovation.

Keywords: Tax incentive; On-the-job training; Human capital (search for similar items in EconPapers)
JEL-codes: H25 H32 M53 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:chieco:v:75:y:2022:i:c:s1043951x22001080

DOI: 10.1016/j.chieco.2022.101850

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