Employment protection is the micro foundation and practical path to improve people’s living standards and stabilize the employment market. Based on the 11th and 12th micro survey data gathered from private firms in China, this paper empirically studies the impact of the status perception of private entrepreneurs on employment protection. The study finds that the improvement of the status perception level of private entrepreneurs can significantly improve the psychological state of entrepreneurs, strengthen their long-term business-oriented behavior, and then enhance their willingness to fulfill employees’ corporate social responsibility. Specifically, when the status perception of entrepreneurs is higher, the employment proportion of long-term employees is significantly increased, while that of short-term and temporary employees is significantly reduced. At the same time, the above relationships are heterogeneous with different regions and firm situations. The study finds that when the career horizon of officials in the region where the firm is located is higher, entrepreneurs with a higher subjective status are vulnerable to the impact of local government officials, thus strengthening the impact on employment protection. When the regional market environment is worse and the unemployment rate is higher, entrepreneurs with a higher subjective status tend to take the initiative to take responsibility and take actions to improve the quality of employment protection. In addition, the subjective status of entrepreneurs can effectively mitigate the adverse impact of high-level risk perception, and non-union and non-political connection on employment protection. The empirical results show that, when the career horizon of officials in the region where the firm is located is higher, the market system is worse, and the unemployment rate is higher, the impact of the status perception of entrepreneurs on employment protection is more obvious. When a firm has a higher level of risk perception and does not establish unions and political connections, the impact of the status perception of entrepreneurs on employment protection is stronger. The mechanism test shows that the subjective status of entrepreneurs mainly improves the quality of employment protection by improving the internal employment environment, enhancing the “collective voice” of employees and strengthening the government-enterprise connection. Further research reveals that improving the quality of employment protection can effectively promote the improvement of regional market environment. From the perspective of social psychology, this paper reveals the effect and mechanism of the subjective status perception of entrepreneurs on employment protection, and expands the research on employee rights protection. It also provides necessary practical enlightenment for building a social atmosphere of respect for entrepreneurs, strengthening entrepreneurs’ self-identity, and promoting high-quality economic and social development.
Status Perception of Private Entrepreneurs and Employment Protection
Journal of Shanghai University of Finance and Economics Vol. 25, Issue 01, pp. 93 - 107,123 (2023) DOI:10.16538/j.cnki.jsufe.2023.01.007
Cite this article
Gan Weiyu, Qin Tianzhu. Status Perception of Private Entrepreneurs and Employment Protection[J]. Journal of Shanghai University of Finance and Economics, 2023, 25(1): 93-107.
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