The Impact of Digital Economy Development on the Structural Transformation of Rural Labor in China

This article investigates how the ascent of the digital economy reshapes the structure of rural employment in Shaanxi, China, over 2013–2022. Using county-level panel fixed-effects models and instrumenting for potential reverse causality, we find that higher digital-economy scores significantly increase the female employment share while reducing formal wage employment. These dual shifts highlight both opportunities and vulnerabilities in the rural labor market. The findings highlight the necessity of robust digital infrastructure investments, comprehensive skill enhancement programs, and efficient employment service platforms to reduce transaction costs and mitigate information asymmetries. Policymakers are encouraged to foster collaborative stakeholder engagement to effectively address rural employment challenges and ensure inclusive economic development.