Recently, researcher Ye Jingjing of the Center for International Cooperation and Disciplinary Innovation of Income Distribution and Public Finance (111 Center) and her collaborators published their research findings titled Optimizing the Costs and Sharing Mechanism of Maternity Leave for Enterprises in the top-tier journal in China, Journal of Management World (Vol. 40, No.12).
Abstract
The effective implementation of pro-natalist policies is pivotal for achieving sustainable development and ensuring long-term population growth. Motivated by the observed underutilization of maternity leave, this paper develops a general equilibrium model to illustrate the pass-through of policy costs from firms to workers. The theoretical findings provide a coherent explanation for the dual challenges of dimin⁃ ished labor demand and insufficient uptake of maternity leave. Utilizing the exogenous shock from the 2016 maternity leave policy reform, our empirical analysis shows that the incurred costs extend beyond direct expenses such as wage replacement and insurance contributions; they al⁃ so encompass indirect costs related to employee training and turnover. Notably, these costs contribute to a reduction in firm productivity. Based on both theoretical and empirical analysis, we simulate a cost-sharing ratio of 1:2.7 between government and firms to achieve full imple⁃ mentation of maternity leave policies. This paper not only expands the theoretical research on the cost-sharing of labor protection policies, but also contributes to a more comprehensive understanding of the policy- related costs on firms. It provides insights for improving cost-sharing mechanisms of fertility costs among the government, firms, and families.
About the Author
Ye Jingjing is a professor and doctoral supervisor at the School of Public Finance and Taxation, Zhongnan University of Economics and Law (ZUEL), as well as a researcher at the Center for International Cooperation and Disciplinary Innovation of Income Distribution and Public Finance (111 Center). Her research fields include public economics and labor economics, focusing primarily on issues such as the efficiency of fiscal fund utilization, housing wealth, and tax policy design. Her research findings have been published in domestic and international journals, including the Journal of Management World, The Journal of World Economy, China Economic Quarterly, and the Journal of Banking and Finance. She serves as a council member of the Chinese Association of Quantitative Economics and as a guest editor-in-chief for the China Economic Review.
Introduction
Founded in 1985, the Journal of Management World is an academic journal sponsored by the Development Research Center of the State Council (DRC). As one of the first academic journals certified by the State Administration of Press, Publication, Radio, Film and Television of the People's Republic of China (SAPPRFT), it has been recognized as one of the "Top 100 Journals on Social Sciences" twice. It is also an academic journal recognized by the National Natural Science Foundation of China and one of the first key journals funded by the National Social Science Fund of China, as approved by the National Office for Philosophy and Social Sciences. The Journal of Management World has ranked first among management academic journals in China's three major evaluation systems for social science journals, including the Chinese Social Science Citation Index (CSSCI), for many years. Additionally, it is acclaimed as the only "top-tier journal" in management science in the journal evaluation by the Chinese Academy of Social Sciences. Regarding international influence, it is also among the best in its category in China.