Medical Insurance Contribution and Firm-Level Total Factor Productivity
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Tao Huang
,
Rui Sun
und
Zhe Zhao
Abstract
This paper investigates the relation between medical insurance contribution and firm-level total factor productivity in China. Using a sample of Chinese A-share companies from 2007 to 2022, we find robust evidence that firms exhibit lower total factor productivity when medical insurance contribution is increasing. Specifically, we also show that this negative effect is more profound for state-owned enterprises, enterprises with lower employee compensation, and labor-intensive enterprises. Meanwhile, our findings remain valid after a series of robustness tests and controlling for endogeneity. Finally, we propose that the decreasing employees’ disposable income is plausible channel through which medical insurance contribution discourages firm-level total factor productivity in China. Overall, these results shed light on the real effects of medical insurance contribution and the determinants of firm-level total factor productivity.
Funding source: National Natural Science Foundation of China
Award Identifier / Grant number: 72303087
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Conflicts of interest: The authors declare no conflict of interest.
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Research funding: This work was supported by the National Natural Science Foundation of China [grant number 72303087].
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Artikel in diesem Heft
- Frontmatter
- Featured Articles (Research Paper)
- Balancing Innovation and Profitability: Technological Diversification in Iran’s Insurance Industry
- Medical Insurance Contribution and Firm-Level Total Factor Productivity
- Cream Skimming and Technological Innovations in Automobile Insurance Market
- A Study on the Current Bonus–Malus System in the Moroccan Automobile Insurance Market
Artikel in diesem Heft
- Frontmatter
- Featured Articles (Research Paper)
- Balancing Innovation and Profitability: Technological Diversification in Iran’s Insurance Industry
- Medical Insurance Contribution and Firm-Level Total Factor Productivity
- Cream Skimming and Technological Innovations in Automobile Insurance Market
- A Study on the Current Bonus–Malus System in the Moroccan Automobile Insurance Market
