Social Insurance Pressure and Green Production Levels in Labour-Intensive Enterprises: Quasi-Experimental Evidence Based on the Implementation of the Social Insurance Law

Bomin Liu, Cai Zhang and Junwei Zhang

SAGE Open, 2025, vol. 15, issue 3, 21582440251365033

Abstract: The implementation of China’s Social Insurance Law may increase the burden of social insurance contributions on enterprises, potentially affecting their production behaviour. This study empirically examines the impact of the law on green production in labour-intensive enterprises, using sample data from 717 listed companies in the A-share market from 2008 to 2016 and employing a difference-in-differences model. The findings are as follows: (1) the Social Insurance Law effectively reduces the pollution intensity of labour-intensive enterprises, promoting green production, with a more pronounced effect observed in low-pollution, private, and manufacturing enterprises; (2) mechanism tests reveal that the law encourages green technological innovation and increases the capital-labour ratio in labour-intensive enterprises, thereby reducing pollution intensity. This mechanism plays a crucial role in promoting green production; and (3) the law has a significant lag effect on green production in labour-intensive enterprises. This study’s conclusions offer valuable insights into the impact, mechanisms, and logic behind the implementation of the Social Insurance Law, providing new perspectives and empirical evidence to guide enterprises in fostering green production and advancing China’s economy towards green, high-quality development. JEL Classification: O20, A14, I38, O47.

Keywords: Social Insurance Law; difference-in-differences model; labour-intensive enterprises; green production (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:sae:sagope:v:15:y:2025:i:3:p:21582440251365033

DOI: 10.1177/21582440251365033

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