Abstract:

This paper examines the effect of state–owned capital participation on labor protection in private enterprises and finds that state-owned capital participation significantly promotes labor protection in private enterprises, relieving financial pressure and restraining managerial myopia are two paths to produce the above–mentioned effects. Further evidence shows that state-owned capital participation can significantly increase the proportion of highly educated and skilled employees in private enterprises, thus promoting labor protection in private enterprises. Heterogeneity analysis shows that state-owned capital shares play a more significant role in labor protection when private enterprises are more labor-intensive, less fiscal pressure and less population mobility. The analysis of economic consequences shows that state-owned capital shares can improve the labor productivity and staff allocation efficiency of private enterprises by improving the level of labor protection. The conclusion not only provides a theoretical reference for optimizing the use of state-owned capital, but also provides an empirical basis for expanding employment and improving the well–being of employees.

Key words:

state-owned capital participation, labor protection, financial pressure, managerial myopia, labor employment decision