IDEAS home Printed from https://ideas.repec.org/a/eee/reveco/v96y2024ipas1059056024005781.html
   My bibliography  Save this article

The impact of financial technology on employment: Protection or disruption?

Author

Listed:
  • Huang, Yuhong
  • Gao, Yajia

Abstract

This study examines the impact and underlying mechanisms of financial technology (FinTech) on corporate labor demand by utilizing microdata from Chinese listed companies between 2011 and 2019. The results indicate that FinTech significantly enhances firms' overall labor demand and demand for skilled labor. Mechanistic analysis reveals that FinTech alleviates firms' financing constraints, increasing research and development (R&D) investments, which subsequently stimulates labor demand. Heterogeneity tests have revealed that the impact of FinTech on firms' labor demand varies depending on their stage of growth, ownership attributes, and level of financial development in the regions in which they are located. Furthermore, we reveal that FinTech can concurrently increase labor demand for workers with varying skill levels and educational backgrounds and increase the share of labor income. We provide new insights with theoretical and practical implications for studying the intrinsic linkages between financial and labor markets.

Suggested Citation

  • Huang, Yuhong & Gao, Yajia, 2024. "The impact of financial technology on employment: Protection or disruption?," International Review of Economics & Finance, Elsevier, vol. 96(PA).
    • Handle: RePEc:eee:reveco:v:96:y:2024:i:pa:s1059056024005781
    DOI: 10.1016/j.iref.2024.103586
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1059056024005781
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.iref.2024.103586?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    FinTech; Labor demand; Financing constraint; Employment;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:reveco:v:96:y:2024:i:pa:s1059056024005781. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/620165 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.