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The Impacts of Digital Transformation on Labor Income Share: Evidence from China

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  • Xudong Li
  • Gen-Fu Feng
  • Wai Yan Shum
  • Kam Hung Chui

Abstract

This paper uses the data of Chinese A-share listed companies to study whether enterprise digital transformation will affect the labor income share. The research results show that enterprise digital transformation greatly increasing the labor income share, and our inferences unchanged after a wide battery of robustness tests. Further studies show that the mechanism of digital transformation to increase labor income share is to expand the scale of employment and increase the proportion of highly skilled labor in the total labor force. Subsample study shows that digital transformation only raises the labor income share of larger scale and higher competitive position enterprises. The research can provide policy references for developing digital economy and improving development quality.

Suggested Citation

  • Xudong Li & Gen-Fu Feng & Wai Yan Shum & Kam Hung Chui, 2024. "The Impacts of Digital Transformation on Labor Income Share: Evidence from China," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 60(6), pages 1265-1280, May.
    • Handle: RePEc:mes:emfitr:v:60:y:2024:i:6:p:1265-1280
    DOI: 10.1080/1540496X.2023.2273996
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