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Empirical test of the impact of the digital economy on China's employment structure

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  • Wu, Bangzheng
  • Yang, Weiguo

Abstract

Changes in employment structure are important factors in developing countries' economic development, industrial restructuring, and labor productivity increases.Based on provincial panel data of China from 2014 to 2020, this paper empirically analyzes the impact of the development of the digital economy on China's employment structure. The purpose of this study is to gain a comprehensive understanding of China's employment structure adjustment trends in the digital economy era, as well as to provide a qualitative and quantitative foundation for the development of the digital economy, industrial structure optimization, and employment promotion policies. The results show that the digital economy has significantly impacted China's employment structure. At the industrial level, its influence process presents the characteristics of an "inverted U-shape," while at the trade level and skill levels, it presents the characteristics of a "positive U-shape." In the initial stage of development, the employment of the secondary sector, high-tech industry, and highly skilled workers were relatively reduced. With the advancement of digitization, the workforce has become more manufacturing-oriented, high-tech, and highly trained. Further mechanism testing shows that upgrading industrial structure and the stock of human capital has a certain degree of gain effect on the employment structure of the digital economy's development. Therefore, in the digital economy, it is vital to support, promote, and lead enterprises to accelerate the process of digital transformation, increase workers' knowledge and skills, and stimulate the dividend of human capital.

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  • Wu, Bangzheng & Yang, Weiguo, 2022. "Empirical test of the impact of the digital economy on China's employment structure," Finance Research Letters, Elsevier, vol. 49(C).
    • Handle: RePEc:eee:finlet:v:49:y:2022:i:c:s1544612322002847
    DOI: 10.1016/j.frl.2022.103047
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    Cited by:

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    2. Ting Zhu & Xiaqing Chen & Wenwen Zhang & Basil Sharp, 2023. "Analysis of the Spatial–Temporal Evolution of the Digital Economy and Its Impact on the Employment Structure in China from 2001 to 2020," Sustainability, MDPI, vol. 15(12), pages 1-18, June.
    3. Luan, Bingjiang & Zou, Hong & Huang, Junbing, 2023. "Digital divide and household energy poverty in China," Energy Economics, Elsevier, vol. 119(C).
    4. Muhammad Imran & Xiangyang Liu & Rongyu Wang & Shah Saud & Yun Zhao & Muhammad Jalal Khan, 2022. "The Influence of Digital Economy and Society Index on Sustainable Development Indicators: The Case of European Union," Sustainability, MDPI, vol. 14(18), pages 1-16, September.
    5. Yi Xu & Jian Li & Yongcan Yan & Pengcheng Gao & Heng Xie, 2022. "Can Coordinated Development of Manufacturing and Information Communication Service Industries Boost Economic Resilience? An Empirical Study Based on China’s Provinces," Sustainability, MDPI, vol. 14(17), pages 1-15, August.
    6. Yang Shen & Xiuwu Zhang, 2024. "The impact of artificial intelligence on employment: the role of virtual agglomeration," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-14, December.
    7. LIU, Nian & GU, Xinhua & LEI, Chun Kwok, 2022. "The equilibrium effects of digital technology on banking, production, and employment," Finance Research Letters, Elsevier, vol. 49(C).
    8. Heng Chen & Yan Zhang, 2022. "Research on the Path of Sustainable Development of China’s Logistics Industry Driven by Capital Factors," Sustainability, MDPI, vol. 15(1), pages 1-26, December.
    9. Qi, Wenhao & Li, Biao & Liu, Qiqi & Lv, Jiaqi, 2023. "Low-skill lock-in? Financial resource mismatch and low-skilled labor demand," Finance Research Letters, Elsevier, vol. 55(PB).

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