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Impact of digital inclusive finance on firm employment growth

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  • Shang, Xiaoye
  • Liu, Canhui

Abstract

The development of digital inclusive finance has predominantly impacted enterprise development. Herein, its effect on enterprises’ employment demand was assessed and using data from Chinese A-share listed firms. By proposing a intensity difference-in-differences (DID) model, this paper finds that digital inclusive finance has significantly increased enterprises’ employment demand, particularly for highly skilled talent. This effect is realized mainly through alleviating enterprises’ financing constraints and promoting digital transformation. However, this impact is heterogeneous considering it is more pronounced among nonhigh-tech enterprises and those with lower-wage levels. This study offers policy implications for expanding employment in the context of the digital economy. Specifically, the government can leverage digital finance to ease firms’ financing constraints and promote their digital transformation, thereby increasing employment.

Suggested Citation

  • Shang, Xiaoye & Liu, Canhui, 2026. "Impact of digital inclusive finance on firm employment growth," Finance Research Letters, Elsevier, vol. 90(C).
    • Handle: RePEc:eee:finlet:v:90:y:2026:i:c:s1544612325024547
    DOI: 10.1016/j.frl.2025.109205
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