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Articles

How does anti-corruption affect firm labour inputs? Evidence from a quasi-natural experiment in China

 

ABSTRACT

This study investigates the impact of anti-corruption on firm labour inputs. Using the province-by-province rollout of the central inspection team campaign in China, we find that the labour intensity rises by 9% in the firms located in the provinces inspected by the central inspection teams. Moreover, firms with low corruption are more susceptible to the policy shock.

JEL CLASSIFICATION:

Disclosure statement

No potential conflict of interest was reported by the author.

Notes

1 Evaluating the effects of CITC appeals scholars. Kong, Wang, and Wang (Citation2017) find that it increases central state-owned enterprises’ performances, but decreases non-state-owned enterprises’ performances. Qian (CitationForthcoming) shows that it decreases local financing vehicles’ earnings and finds that credit risk mispricing occurs in Chengtou bond market.

2 Chongqing, Hubei, Jiangxi, Guizhou and Inner Mongolia constitute the former five regions. Whereas, Shanghai, Tibet, Sichuan, Guangxi, Heilongjiang, Hebei, Zhejiang, Qinghai, Shaanxi and Jiangsu represent the latter 10 regions.

3 Only the mean Lev for treatment and control groups are significantly different for each other.

Additional information

Funding

This work was supported by the National Natural Science Foundation of China [71703047] and China Postdoctoral Science Foundation [2017M610466 and 2018T110748] .

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