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Trading and Staying: How E-Commerce Shapes Rural Labor Supply and Retention in China

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Listed:
  • Dongshi Chen

    (School of Humanities and Fundamental Sciences, Shenzhen University of Information Technology, Shenzhen 518172, China)

  • Xiaokang Li

    (School of Economics, South-Central Minzu University, Wuhan 430074, China)

Abstract

E-commerce is reshaping rural economies in developing countries, yet micro-level evidence on its early effects on rural labor supply and retention remains limited. This study examines these effects in China, distinguishing between platform e-commerce (e.g., Taobao) and social e-commerce (e.g., WeChat) to uncover heterogeneous effects across different models and demographic subgroups. We employ a propensity score matching difference-in-differences (PSM-DID) method using two-period panel data from 3234 rural residents, covering the critical period of rural e-commerce emergence and expansion in China from 2013 and 2017. Results show that different e-commerce models shape rural labor allocation along both temporal and spatial dimensions. Platform e-commerce significantly promotes localized labor participation, while social e-commerce offers flexible entry points for vulnerable populations such as child-bearing, left-behind women. These findings offer lessons for inclusive digital development in developing countries facing rural labor outflow and digital divides.

Suggested Citation

  • Dongshi Chen & Xiaokang Li, 2026. "Trading and Staying: How E-Commerce Shapes Rural Labor Supply and Retention in China," Sustainability, MDPI, vol. 18(8), pages 1-27, April.
    • Handle: RePEc:gam:jsusta:v:18:y:2026:i:8:p:3970-:d:1921706
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