Agglomeration of Data Elements, Service Trade Liberalization, and Labor Structure Upgrading

ABSTRACT This study constructs a quasi‐natural experiment on a dual pilot policy comprising the National Big Data Comprehensive Pilot Zone and Demonstration Zones for Innovative Development of Trade in Services. Using data from Chinese A‐share listed manufacturing companies from 2010 to 2023, this study examines how the opening up of trade in services in the digital era affects companies' labor structure. Findings indicate the following. (1) The dual pilot policy significantly increases the personnel share of the high‐skilled labor force of companies in pilot cities. (2) The dual pilot policy promotes the upgrading of companies' labor structure by alleviating financing constraints and enhancing specialization level. (3) The structural upgrading effect of the dual pilot policy is more pronounced in state‐owned companies and companies facing stronger market competition, engaged in emerging advantageous industries, and located in the central and western regions.