ICT, heterogeneous labor structure and productivity of producer service enterprises: evidence from China

Purpose - This paper explores the impact of information and communications technology (ICT) on the productivity rates of producer service enterprises and its mechanisms. Design/methodology/approach - The core dataset used in this paper is the World Bank’s 2012 China Enterprise Survey. The data on enterprises provided by the World Bank has its unique advantages. First, the questionnaire provides a detailed record of enterprises’ ICT investment and usage. Second, it provides a diversified description of the enterprises’ current labor structures in terms of education, skills and employment latitudes. Building on this dataset, this paper adopts quantitative methods, including the fixed effect model and instrumental variable approach for the study. Findings - Our research shows that ICT application boosts the productivity of producer service enterprises. Employees with a high education background, proficient skills and non-lifelong contracts complement the application of ICT. Heterogeneity analysis reveals significant productivity and a complementary effect of ICT on labor structure in regions with well-developed markets, knowledge-intensive industries and enterprises with a relatively larger scale of operation. Originality/value - In the context of digital globalization, the rational use of ICT to lead the high-quality development of the service industry is of great significance in achieving structural transformation.