Recently, Professor Wan Haiyuan of BNUBS and doctoral students Zhu Zhikai, Zhang Wei and He Weidong co-authored the paper Stabilizing Employment Effect of Housing Provident Fund Fee Reduction and its Explanation published in the 4th issue of Management Worldin 2024. This paper studies the employment response of enterprises in housing provident fund reform and analyzes the stabilizing employment effect of provident fund fee reduction and reverse discussion of the provident fund system attributes.

Employment is the biggest livelihood, and how to expand employment is of great significance to economic development and social stability. In the face of the current dual challenges of stabilizing enterprises and promoting employment, the central government has issued a series of supportive policies to reduce fees and loosen restrictions on enterprises, aiming to reduce the cost burden of enterprises and stimulate the vitality of enterprise development, in order to help enterprises tide over difficulties, while stabilizing the employment of market players and workers to the greatest extent.Housing provident fund is an important part of China's social security system, and its capital scale is huge, involving a large number of enterprises and employees, so the policy of provident fund to reduce costs has a wide impact. Under the background of vigorously promoting the burden reduction of enterprises, the effect evaluation of the provident fund cost reduction policy has become an important issue. Although the provident fund cost reduction policy has been implemented for many years, there are still relatively few studies on the effect of reducing the provident fund burden in promoting the development of enterprises and stabilizing the employment of employees. The purpose of this paper is to explore the specific impact of the provident fund cost reduction policy on the development of enterprises and employees' employment, and to provide inspiration and suggestions for further deepening the provident fund reform and reducing the burden of enterprises. The results show that lowering the minimum contribution ratio of provident fund will reduce the expenditure of provident fund, encourage enterprises to expand employment demand, and achieve the effect of stable employment. Based on the subjective survey data of entrepreneurs, this paper finds that the reduction of provident fund fees allows enterprises to enjoy actual benefits, which will boost the development expectations of enterprises. In particular, the expected improvement effect of private enterprises is more obvious, so it will bring greater employment promotion effect, indicating that private enterprises are more likely to use provident fund as a cost rather than a benefit. Labor-intensive and cash-flow deficient enterprises are more sensitive to the change of deposit ratio, so the provident fund fee reduction policy has a greater effect on the improvement of enterprise expectations and employment promotion.

Wan Haiyuan, Zhu Zhikai, Zhang Wei, He Weidong, Stabilizing Employment Effect of Housing Provident Fund Fee Reduction and its Explanation, published in theManagement World in 2024. 4, article links: https://mp.weixin.qq.com/s/GraNBkOp_5n3AK4uPjXNHA

Provided by Scientific Research Office

Edited by Sun Yue

Reviewed by Cai Hongbo