Can digital economic development facilitate employment growth? Empirical evidence from China

Abstract

Abstract With the gradual disappearance of the demographic dividend, the recurring world financial crisis, and the sudden outbreak of the new crown epidemic, a variety of complex factors have caused the Chinese job market to be under unprecedented pressure. In recent years, the development of the digital economy does not seem to be affected by the above factors. Can the fast-growing digital economy ease the current employment pressures facing China? In this paper, through the establishment of an index system of digital level of economic development, use of Chinese 30 provinces from 2011 to 2019, the digital economy data, calculate the annual digital economy development level of each province and explore the impact of digital economy development on employment. The findings show that the level of digital economy development is higher in the eastern coastal regions of China than in the western inland regions; through the development of the digital economy, the employment level can be effectively enhanced. This conclusion persisted after a series of robustness tests. The mechanism test finds that digital economy development affects the change of employment volume by influencing the level of education. Through further research, it is found that there is a threshold effect on the impact of the digital economy on employment in the central and eastern regions. This may be because there is a large variation in economic levels and an imbalance in education between the central and western regions, creating a certain amount of over-education. Finally, on the basis of the digital economy development and the current situation of employment of China now, this article from the perspective of the development of digital economy, education levels, improve some targeted suggestions are put forward.