Digital Transformation and Enterprise Labor Employment: Incentivizing or Suppressing?

In the context of accelerated digital economic development, digital trans-for-mation has not only become a core driver for organizational restructuring and business model innovation in enterprises, but also profoundly influenced labor market reforms, serving as a crucial approach to achieving stable em-ployment goals. Using the establishment of National Big Data Comprehensive Pilot Zones as a natural experiment, this study employs the differ-ence-in-differences method to demonstrate that these zones significantly en-hance corporate em-ployment levels. Mechanism tests reveal that these zones boost employment scale through three pathways: improving production effi-ciency, reducing op-erational costs, and enhancing business performance. Ex-panding the research framework to examine how National Big Data Comprehen-sive Pilot Zones affect productivity, the study finds that such zones improve factor allocation, promote specialized division of labor, and optimize human capital to enhance production efficiency. Heterogeneity tests indicate that the employ-ment-promoting effects are more pronounced in pilot zones with stronger internal controls, those located in Northeast China, northern coastal regions, and the middle reaches of the Yangtze River, as well as non-technology-intensive enterprises. This research not only deepens our un-derstanding of how National Big Data Comprehensive Pilot Zones empower corporate employment, but also holds significant practical implications for ad-vancing and refining industrial policies aimed at stabilizing employment.

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Publication Details

Journal
Economics & Business Management
Published
2025-08-26
DOI
https://doi.org/10.63313/ebm.9092
Primary Topic
Digital Economy and Work Transformation
Type
article
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article

Digital Transformation and Enterprise Labor Employment: Incentivizing or Suppressing?

Zhiqi Fan
Economics & Business Management
Digital Economy and Work Transformation
article

Digital Transformation and Enterprise Labor Employment: Incentivizing or Suppressing?

Zhiqi Fan
article en

Abstract

In the context of accelerated digital economic development, digital trans-for-mation has not only become a core driver for organizational restructuring and business model innovation in enterprises, but also profoundly influenced labor market reforms, serving as a crucial approach to achieving stable em-ployment goals. Using the establishment of National Big Data Comprehensive Pilot Zones as a natural experiment, this study employs the differ-ence-in-differences method to demonstrate that these zones significantly en-hance corporate em-ployment levels. Mechanism tests reveal that these zones boost employment scale through three pathways: improving production effi-ciency, reducing op-erational costs, and enhancing business performance. Ex-panding the research framework to examine how National Big Data Comprehen-sive Pilot Zones affect productivity, the study finds that such zones improve factor allocation, promote specialized division of labor, and optimize human capital to enhance production efficiency. Heterogeneity tests indicate that the employ-ment-promoting effects are more pronounced in pilot zones with stronger internal controls, those located in Northeast China, northern coastal regions, and the middle reaches of the Yangtze River, as well as non-technology-intensive enterprises. This research not only deepens our un-derstanding of how National Big Data Comprehensive Pilot Zones empower corporate employment, but also holds significant practical implications for ad-vancing and refining industrial policies aimed at stabilizing employment.

Economics & Business ManagementVol. 2(3)
Anhui University of Finance and Economics (CN)
Openalex Percentile: Top 70%
Digital Economy and Work Transformation
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