最低工资标准的上涨是否会加剧企业避税?

Does Increasing the Minimum Wage Induce Tax Avoidance?

作为保障劳动者权益的重要举措,中国的最低工资标准制度产生了持续而广泛的影响。本文尝试从企业避税视角理解这一制度的潜在影响。理论上,最低工资标准的上涨会增加企业的劳动力成本与生产调整难度,这会使企业在遭遇负面冲击时更有可能陷入经营困境,此时企业通过税收规避抵御风险的需求增加。以中国上市公司为研究样本,实证结果支持了上述理论推断。企业所在地区的月最低工资标准每上涨100元,企业通过避税所带来的所得税现金流出会下降约252%。进一步,最低工资标准上涨对企业避税的促进作用主要集中在那些劳动力成本更有可能因最低工资标准上调而增加的企业(劳动密集度较高、平均工资水平较低和成本转嫁能力较弱的企业),以及遭遇负面冲击时更有可能陷入经营困境的企业(成长性较高、规模较小、经营活动产生的现金流入较少和经营杠杆系数较高的企业)。最后,最低工资标准上涨背景下的企业避税行为降低了企业经营风险,提升了企业价值。

In 1993, China introduced a minimum wage system, which was further improved and implemented nationwide in 2004. In 2007, the government introduced the Labor Contract Law of the People's Republic of China. These measures indicate that the protection of Chinese workers is gradually increasing and is likely to be further strengthened. However, although these measures have strengthened the rights and interests of workers, they have led to the gradual increase in the labor costs of enterprises. According to the figures from China's Bureau of Statistics and the U.S. Department of Labor, in 1990, the annual average income of urban employees in China was USD 447, accounting for 1/50 of the annual average income of U.S. employees in the same period. In 2015, the average annual salary of urban employees in China reached USD 9,959, accounting for one-fifth of the average annual salary of American employees in the same period. Against this background, in this paper, we examine the measures that Chinese companies have taken in response to the increasing protection of their workers. Specifically, we explore whether enterprises engage in greater tax avoidance to reduce the adverse effects of the labor protection policies. Tax is an important operating cost of enterprises, and a large proportion of corporate profits are paid to the state in the form of tax. Therefore, tax is of great economic significance to enterprises. In this respect, corporate tax avoidance is likely to be one of the strategies that enterprises use to respond to the increased protection of the labor force. Among the several measures for strengthening labor protection, this paper examines the minimum wage system because compared to the other labor protection measures, a minimum wage has a wide impact and can lead to long duration advantages, especially in China, where wages are generally lower. In theory, an increase in the minimum wage will lead to increased labor costs and production adjustment difficulties for enterprises, which will make the enterprises more prone to negative shocks. As a result, enterprises tend to engage in tax evasion to resist the increased demand for risk. Accordingly, we expect corporate tax avoidance to increase significantly as the local minimum wage increases. Using Chinese A-share listed firms as a research sample, the empirical results of this paper support the above expectations. Specifically, after controlling the variables at the firm level, and the time effects, industry effects, and regional effects that may affect tax avoidance, we find that the increases in the minimum wage in various regions encourage local enterprises to engage in greater income tax avoidance. On average, for every RMB100 increase in the monthly minimum wage in the region where a firm is located, the firm pays around 2.52% less income tax as a result of tax avoidance. This conclusion remains unchanged after a series of robustness tests. Furthermore, the effect of the minimum wage on tax avoidance is mainly concentrated in firms whose labor costs are more likely to increase as a result of an increased minimum wage (i.e., firms with higher labor intensity, lower average wages, and lower cost passing capacity) and firms that are more likely to encounter difficulties when faced with negative shocks (i.e., firms with higher growth, smaller scale, less cash inflow from business activities, and higher operating leverage). Finally, in the context of the increase in the minimum wage, corporate tax avoidance can reduce business risk and enhance firm value. This paper makes two main contributions to the literature. First, this paper examines the potential impact of increased labor protection on enterprises from the perspective of corporate tax avoidance. Second, this paper adds to the literature on the impact of corporate stakeholders on corporate tax avoidance by examining the issue from a corporate employee perspective. Our findings are also of use to policy-makers by showing that when the government increases the minimum wage, it could consider further increasing the tax deductions for enterprises' wage expenditures (especially for low-income workers), as this would not only protect the rights and interests of workers but also relieve the pressure on the enterprises and maintain the authority of the tax system.