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By Gu Tian’an, Institute of Public Administration and Human Resources, DRC, and Yao Ye, Rutgers University

Research Report, No.73, 2021 (Total 6138) 2021-3-26

Abstract: Salary is the main source of income for residents. Due to the bankruptcy, shutdown, layoffs and pay cuts caused by the COVID-19 pandemic, residents’ jobs, income and consumption have been directly affected. This issue deserves the government’s full attention. However, the existing theoretical discussions on government’s regulation have not delved deep into the salary payment sharing mechanism in emergency. By comparing the efforts of the US and Germany in exploring this mechanism, we have found that such a mechanism has been effective in easing unemployment and pre-warning industrial crises, keeping residents’ income and social security benefit stable. The essence of this mechanism is the share of social risks among various parties through governmental intervention to bring into full play its role as a balancer, stabilizer and mitigator. It is proved necessary and feasible to adopt this mechanism in practice. But due to the two countries’ distinct national conditions and histories, weaknesses remain in the implementation. China needs to draw on the experience from them, improve existing policies for assisting companies and boosting employment, and establish a salary payment sharing mechanism against emergencies with risk sharing at the core.

Keywords: employment, residents’ income, salary payment sharing mechanism, COVID-19 pandemic