E-Development and Digital Infrastructure: Implications for Wage Employment

This study investigates the impact of digital infrastructure development on wage employment across ESCAP countries from 1990-2024. Using panel data regression analysis, the research examines how internet usage, mobile subscriptions, and electricity access influence formal employment patterns, while considering socioeconomic and institutional factors. The empirical findings reveal that digital infrastructure significantly affects wage employment, with mobile subscriptions (0.0199), internet usage (0.0459), and electricity access (0.0936) showing positive relationships with formal employment rates. Government effectiveness emerges as a crucial factor (2.7739), while population growth (0.6911) and secondary education enrollment (0.0298) contribute positively to employment outcomes. An unexpected negative relationship between primary education enrollment and wage employment indicates evolving labor market dynamics in the digital era. The findings suggest that comprehensive strategies combining digital infrastructure investment with institutional strengthening and educational reforms are essential for promoting formal employment growth in developing economies.