What Determines the Extent to which Employers will Comply with their Social Security Obligations? Evidence from Chinese Firm‐level Data

Abstract

Abstract This article aims to extend understanding of employer responses to social protection regulations enacted by government to ensure the well‐being and security of employees. By utilizing firm‐specific data collected from Shanghai we explore the relationship between firm characteristics, employer behaviour, and the effectiveness of compliance mechanisms that have been adopted to contain contribution evasion by employers. We offer empirical evidence about the impact of the size of the firm, ownership structure, and incidence of risk on employer evasion behaviour in social protection payments. These results should enable enforcement agencies to improve compliance levels and also contribute to building theory as regards the significance of social policies to employers and the impact of social protection on human resource policy.