Using micro-level data from China Employer-Employee Survey(CEES),this paper conducts an empirical analysis of firms’heterogeneous characteristics in the implementation of the Labor Contract Law and its effects on employees.Our findings are as follows:With China’s economic development,firms more proactively implement the Labor Contract Law,resulting in a higher percentage of employees with labor contracts.Labor contracts significantly increase the probability of employees in receiving social insurances,such as pension,health,unemployment,work injury and birth insurances,and have a significantly positive effect on wage income.Longer term of labor contract corresponds to stronger employment protection,and such an effect is highly robust.Larger firms with higher capital-labor ratios have better results in implementing the Labor Contract Law.And employees of private and labor-intensive firms have poorer coverage of employment and social protection;such firms should be given focal attention in the law’s implementation.
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