Abstract The pension insurance fee reduction policy is an important part of China’s tax and fee reduction reform in recent years. Based on the periodic policies of pension insurance fee reduction in 2016, this paper constructs a Double Difference Model, and analyzes the impact of pension insurance fee reduction policy on enterprise investment. The study finds that the pension insurance fee reduction policy not only reduces the payment burden of enterprises, but also suppresses the investment scale and over-investment behavior of enterprises.The impact of this policy on corporate investment is more significant in those enterprises with low average wage level or in those non-state-owned enterprises. In addition, the pension insurance fee reduction policy not only increases the wages of employees, but also causes enterprises to replace capital with labor, which is conducive to stable employment. This study will provide theoretical support for government departments to further deepen the reform of pension insurance fee reduction.
2021, Vol. 38 
