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Low-skill lock-in? Financial resource mismatch and low-skilled labor demand

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Listed:
  • Qi, Wenhao
  • Li, Biao
  • Liu, Qiqi
  • Lv, Jiaqi

Abstract

Based on data from Chinese A-share listed companies from 2013 to 2020, this paper empirically analyzes the impact of the degree of financial resource mismatch on enterprises' demand for low-skilled labor. We find that financial resource mismatch significantly increases the proportion of low-skilled labor employment by affecting firms' digital transformation, innovation capability, and R&D investment, leading to a low-skilled labor lock-in phenomenon. The phenomenon is more pronounced in manufacturing, non-state, and redundant employment firms.

Suggested Citation

  • 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).
    • Handle: RePEc:eee:finlet:v:55:y:2023:i:pb:s1544612323003756
    DOI: 10.1016/j.frl.2023.104003
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    9. Zhang, Li & Song, Xinwei, 2025. "Managerial overconfidence and corporate digital transformation," Finance Research Letters, Elsevier, vol. 75(C).

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