Bin R. Chen and
INDUSTRIAL AGGLOMERATION AND EMPLOYER COMPLIANCE WITH SOCIAL SECURITY CONTRIBUTION: EVIDENCE FROM CHINA
Journal of Regional Science: 23 DEC 2013
Abstract：This paper, by using annual surveys of Chinese manufacturing firms from 2001 to 2007, investigates the relationship between industrial agglomeration and employer compliance with required pension contributions. The result of panel fixed-effect estimation shows that in the more agglomerated industrial areas, firms comply with pension mandates at a higher level. Our finding is robust to various specifications and estimations employing instrumental variables.