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INDUSTRIAL AGGLOMERATION AND EMPLOYER COMPLIANCE WITH SOCIAL SECURITY CONTRIBUTION: EVIDENCE FROM CHINA
Author(s) -
Chen Bin R.,
Wu Mingqin
Publication year - 2014
Publication title -
journal of regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.171
H-Index - 79
eISSN - 1467-9787
pISSN - 0022-4146
DOI - 10.1111/jors.12096
Subject(s) - economies of agglomeration , china , instrumental variable , estimation , pension , panel data , compliance (psychology) , business , social security , manufacturing , industrial organization , econometrics , economics , microeconomics , finance , market economy , marketing , geography , psychology , social psychology , management , archaeology
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.