Abstract: Based on the social categorization theory and information decision making theory, taking 2091 non-financial listed companies in Shanghai and Shenzhen Stock Markets from 2013 to 2017 as a sample, the panel threshold model is established to investigate the employment effects of enterprise innovation under the different proportions of returnees in the executive team. The empirical results show that the returnee enterprises have stronger technological innovation preferences than the local enterprises. As for the whole sample, with the increase of the proportion of returnee executives, the enterprise technological innovation in the three threshold intervals are respectively presented as a spiral upward characteristic of promoting, inhibiting, and promoting the employment. Taking property rights into account, with the increase of returnees social categorization rate, non-state-owned enterprises show more sustainability and stability in promoting employment through technological innovation. The mechanism of the influence of returnee categorization degree on innovation preferences and the transmission channels of employment creation and employment destruction are explained. The research conclusions provide useful policy inspiration for Chinas technological innovation, international talent strategy, enterprises personnel selection and appointments mechanism and state-owned enterprise reform.

Key words: technological innovation, employment effect, returnee executive, social categorization, threshold effect