The relationship between digital literacy and employment quality: Evidence from a Chinese Household Survey

In the digital era, digital literacy has emerged as a critical determinant of employment quality in the labor market. Using nationally representative data from the 2022 China Family Panel Studies (CFPS), this study constructs multidimensional indices of digital literacy and employment quality. Ordinary least squares (OLS) regressions, robustness checks, and moderation models are employed to examine the relationships between these variables and the underlying mechanisms. The findings suggest that digital literacy is significantly associated with employment quality. This relationship is positively moderated by return expectations and negatively moderated by human capital, indicating a stronger association among low-skilled workers with high return expectations. Regional heterogeneity reveals the most significant associations in western China and urban agglomerations—attributable to higher marginal returns on digital skills in underdeveloped regions and denser digital economies in clustered zones. Digital literacy emerges as a pivotal correlate of employment quality, particularly for vulnerable groups and lagging regions. Policy interventions should prioritize (1) inclusive, tiered digital training programs targeting low-skilled workers; (2) regionally differentiated strategies; and (3) leveraging urban agglomerations as hubs for cross-regional resource sharing. These approaches can help narrow digital divides and advance sustainable, equitable, and high-quality employment in the digital era.