Is Supplementary Pension Beneficial to Human Capital Investment? Evidence from China. Issue 3 (19th February 2022)

• Record Type: Journal Article
• Authors: Gong, Yalin; Lai, Li; Chan, Kam C.; Xia, Xiaolan
• Is Part Of: Emerging markets finance & trade. Volume 58:Issue 3(2022)
• Page Start: 739
• Page End: 753
• Publication Date: 2022-02-19
• Subjects: Supplementary pension -- short-term compensation -- employee education -- human capital investment; J24 -- J31 -- J32; Balkan Peninsula -- Commerce -- Periodicals; Balkan Peninsula -- Foreign economic relations -- Periodicals; Europe, Central -- Commerce -- Periodicals; Europe, Central -- Foreign economic relations -- Periodicals; Europe, Eastern -- Commerce -- Periodicals; Europe, Eastern -- Foreign economic relations -- Periodicals; Turkey -- Commerce -- Periodicals; Turkey -- Foreign economic relations -- Periodicals; Asia -- Commerce -- Periodicals; Asia -- Foreign economic relations -- Periodicals; Eurasia -- Commerce -- Periodicals; Eurasia -- Foreign economic relations -- Periodicals; 382.05
• DOI: 10.1080/1540496X.2020.1843426
• Languages: English
• ISSNs: 1540-496X

Abstract

ABSTRACT: We examine the impact of a supplementary pension insurance program (SPIP) and short-term compensation on firm-level human capital investment using a sample of Chinese firms from 2007 to 2018. The findings suggest that both SPIP and short-term compensation have positive effects on human capital investment, and the magnitude of SPIP is stronger than that of short-term compensation. Further analysis suggests that the impact of SPIP on human capital investment in a firm is magnified when the firm has high-quality employees. Our findings are robust after accounting for potential endogeneity concerns. When compared with short-term compensation, SPIPs contribute more to establishing a long-term relationship between a firm and its employees, which stimulates human capital investment.