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Digital transformation, technological innovation, and employment structure change: A panel analysis of chinese cities from the perspective of new quality productive forces

Author

Listed:
  • Liu, Rui
  • Zhang, Runze
  • Lv, Muzhan

Abstract

Against the backdrop of the rapidly expanding digital economy and the rise of new quality productive forces, the impact of digital transformation and technological innovation on employment structure has gained increasing attention. Using panel data from Chinese prefecture-level cities spanning 2000–2023, this study examines how digital transformation and technological innovation affect employment structure and explores moderating influences from fiscal pressure and regional heterogeneity. We find that both digital transformation and technological innovation significantly promote employment structure optimization. Additionally, technological innovation reinforces the positive effect of digital transformation on employment structure. The effect of digital transformation is stronger in cities along the Yangtze River Economic Belt and those with lower fiscal pressure. Overall, this research enriches understanding of employment structure adjustment through the lens of new quality productive forces and provides empirical evidence supporting coordinated regional development and policies that enhance access to highly skilled labor.

Suggested Citation

  • Liu, Rui & Zhang, Runze & Lv, Muzhan, 2026. "Digital transformation, technological innovation, and employment structure change: A panel analysis of chinese cities from the perspective of new quality productive forces," Finance Research Letters, Elsevier, vol. 88(C).
    • Handle: RePEc:eee:finlet:v:88:y:2026:i:c:s1544612325023463
    DOI: 10.1016/j.frl.2025.109097
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