Environmental regulation and enterprise employment creation: A quasi-natural experiment based on the implementation of the new environmental protection law

•Environmental protection law can promote the employment creation effects of enterprises.•This effect is more pronounced in state-owned enterprises.•This effect is more pronounced in enterprises located in the eastern part of the country. This paper empirically tests the effects of environmental regulations implemented under the new Environmental Protection Law. The findings indicate that, among heavily polluting listed companies, a quasi-natural experiment based on the new Environmental Protection Law can promote the employment creation effects of enterprises. Moreover, heterogeneity analysis suggests that this is primarily observed in state-owned enterprises and those located in the eastern part of the country. This study provides significant empirical evidence for the factors affecting enterprise employment creation and contributes a fresh perspective to the field.