Administrative embedding and employee health protection in China

This study aims to investigate the impact of public health shocks and administrative embedding on employee health protection in privately listed companies in the Shanghai and Shenzhen A-share markets between 2011 and 2021, with a particular focus on the COVID-19 shock.

This study uses the Difference-in-Differences methodology to examine the impact of administrative embedding on employee health protection in private enterprises following the COVID-19 shock.

Private enterprises with administrative embedding significantly enhanced employee health protection level after experiencing public health shock. The validity of the research conclusions is confirmed through parallel trend test, endogeneity treatment, and robustness checks. This effect is more pronounced in enterprises located in eastern regions, densely populated areas, and larger companies. Increasing attention to employee health protection plays a mediating role, while urban healthcare condition and social security level serve as positive moderating factors.

Private enterprises should recognize the role of administrative embedding in enhancing governance, employee health protection, and social responsibility. Employee involvement is crucial in health policies, with the government encouraging participation through supportive measures. Balancing efficiency and avoiding excessive interference is key to promoting administrative embedding. In future public health crises, this mechanism can strengthen resilience by enabling quick policy support and effective resource mobilization.