IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i1p260-d1558686.html
   My bibliography  Save this article

Can Urban Internet Development Attract Labor Force? Evidence from Chinese Cities

Author

Listed:
  • Xiaoxia Zhai

    (University Library, Nanjing University of Finance and Economics, Nanjing 210023, China)

  • Yongmin Luo

    (School of Public Finance and Taxation, Nanjing University of Finance and Economics, Nanjing 210023, China)

Abstract

Labor force mobility plays a crucial role in achieving balanced regional development in China. This study investigates whether urban internet development can effectively attract labor force inflow using data from the China Labor-force Dynamic Survey (CLDS) and constructing a comprehensive urban internet development index through factor analysis. Employing a conditional logit model and addressing potential endogeneity through instrumental variables, we find that (1) urban internet development significantly attracts labor force inflow, with a one-unit increase in the urban internet development index significantly raising the log odds of individual city choice by 0.2, and this effect remains robust across multiple specifications and estimation methods; (2) the attraction effect shows significant heterogeneity—it is stronger among highly educated, younger, foreign language proficient, and unmarried individuals, and more pronounced in regions with lower housing costs, lower income levels, and inland locations. These findings suggest that less-developed cities should prioritize internet infrastructure development to accumulate high-quality labor resources and achieve high-quality economic development, while also enhancing support for bottom-tier workers through public-benefit online platforms.

Suggested Citation

  • Xiaoxia Zhai & Yongmin Luo, 2025. "Can Urban Internet Development Attract Labor Force? Evidence from Chinese Cities," Sustainability, MDPI, vol. 17(1), pages 1-16, January.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:1:p:260-:d:1558686
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/1/260/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/17/1/260/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Yang, Xiuyun & Li, Min & Liang, Shanshan, 2024. "How consumers’ digital engagement affects regional innovation capacity in China?," Economic Modelling, Elsevier, vol. 139(C).
    2. Nina Czernich & Oliver Falck & Tobias Kretschmer & Ludger Woessmann, 2011. "Broadband Infrastructure and Economic Growth," Economic Journal, Royal Economic Society, vol. 121(552), pages 505-532, May.
    3. Dao, Thu Hien & Docquier, Frédéric & Parsons, Chris & Peri, Giovanni, 2018. "Migration and development: Dissecting the anatomy of the mobility transition," Journal of Development Economics, Elsevier, vol. 132(C), pages 88-101.
    4. Ren, Jianyu & Xu, Zhitao & Hu, Mingzhi, 2023. "Digital economy and settlement intention of migrants in urban China," Telecommunications Policy, Elsevier, vol. 47(10).
    5. Meng, Lei & Zhao, Min Qiang, 2018. "Permanent and temporary rural–urban migration in China: Evidence from field surveys," China Economic Review, Elsevier, vol. 51(C), pages 228-239.
    6. Han, Yue & Yang, Jie & Ying, Limeng & Niu, Yanfang, 2024. "The impact of corporate digital transformation on labor employment," Finance Research Letters, Elsevier, vol. 60(C).
    7. Li, Wencong & Yang, Xingquan & Yin, Xingqiang, 2024. "Digital transformation and labor upgrading," Pacific-Basin Finance Journal, Elsevier, vol. 83(C).
    8. Zhan, Minghua & Li, Shuai & Wu, Zhouheng, 2023. "Can digital finance development improve balanced regional investment allocations in developing countries? — The evidence from China," Emerging Markets Review, Elsevier, vol. 56(C).
    9. Herman, Peter R. & Oliver, Sarah, 2023. "Trade, policy, and economic development in the digital economy," Journal of Development Economics, Elsevier, vol. 164(C).
    10. Wang, Sai & Wen, Wen & Niu, Yuhao & Li, Xin, 2024. "Digital transformation and corporate labor investment efficiency," Emerging Markets Review, Elsevier, vol. 59(C).
    11. Visser, Robin, 2019. "The effect of the internet on the margins of trade," Information Economics and Policy, Elsevier, vol. 46(C), pages 41-54.
    12. Choi, Changkyu & Hoon Yi, Myung, 2009. "The effect of the Internet on economic growth: Evidence from cross-country panel data," Economics Letters, Elsevier, vol. 105(1), pages 39-41, October.
    13. Tongyang Liu & Dong Xue & Yizhuo Fang & Kunpeng Zhang, 2023. "The Impact of Differentiated Development of the Digital Economy on Employment Quality—An Empirical Analysis Based on Provincial Data from China," Sustainability, MDPI, vol. 15(19), pages 1-26, September.
    14. Frey, Carl Benedikt & Osborne, Michael A., 2017. "The future of employment: How susceptible are jobs to computerisation?," Technological Forecasting and Social Change, Elsevier, vol. 114(C), pages 254-280.
    15. Hu, Yuanhong & Liu, Jing & Zhang, Shuyu & Liu, Yuxin & Xu, Haixin & Liu, Pengling, 2024. "New mechanisms for increasing agricultural total factor productivity: Analysis of the regional effects of the digital economy," Economic Analysis and Policy, Elsevier, vol. 83(C), pages 766-785.
    16. Tanja Buch & Silke Hamann & Annekatrin Niebuhr & Anja Rossen, 2014. "What Makes Cities Attractive? The Determinants of Urban Labour Migration in Germany," Urban Studies, Urban Studies Journal Limited, vol. 51(9), pages 1960-1978, July.
    17. Zimei Liu & Yezhi Ren & Yanlan Mei, 2022. "How Does Internet Use Promote Farmer Entrepreneurship: Evidence from Rural China," Sustainability, MDPI, vol. 14(24), pages 1-15, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Abdulqadir, Idris A. & Asongu, Simplice A., 2022. "The asymmetric effect of internet access on economic growth in sub-Saharan Africa," Economic Analysis and Policy, Elsevier, vol. 73(C), pages 44-61.
    2. Lilia Patrignani, 2024. "Understanding digital trade," Questioni di Economia e Finanza (Occasional Papers) 841, Bank of Italy, Economic Research and International Relations Area.
    3. Tang, Chang & Xu, Yuanyuan & Hao, Yu & Wu, Haitao & Xue, Yan, 2021. "What is the role of telecommunications infrastructure construction in green technology innovation? A firm-level analysis for China," Energy Economics, Elsevier, vol. 103(C).
    4. Lloyd Amaghionyeodiwe & Fenio Annansingh-Jamieson, 2017. "An Investigation into the Impact of Mobile Technologies on Economic Growth and Employment in the Caribbean," Athens Journal of Business & Economics, Athens Institute for Education and Research (ATINER), vol. 3(3), pages 263-278, July.
    5. Terry Gregory & A.M. Salomons & Ulrich Zierahn, 2016. "Racing With or Against the Machine? Evidence from Europe," Working Papers 16-05, Utrecht School of Economics.
    6. Elena Toader & Bogdan Narcis Firtescu & Angela Roman & Sorin Gabriel Anton, 2018. "Impact of Information and Communication Technology Infrastructure on Economic Growth: An Empirical Assessment for the EU Countries," Sustainability, MDPI, vol. 10(10), pages 1-22, October.
    7. Abdulqadir, Idris & Asongu, Simplice, 2021. "The asymmetric effect of internet access on economic growth in sub-Saharan Africa: Insight from a dynamic panel threshold regression," MPRA Paper 109904, University Library of Munich, Germany.
    8. Gnangnon, Sèna Kimm, 2022. "Internet, Participation in International Trade, and Tax Revenue Instability," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 37(2), pages 267-315.
    9. Yidan Li, 2019. "Influence of the Internet on the Economic Growth of the Belt and Road Region," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 11(3), pages 248-259, September.
    10. Joel Cariolle & Maëlan Le Goff & Olivier Santoni, 2017. "Telecommunications submarine cable vulnerability and local performance of firms in developing and transition countries," Post-Print hal-01569846, HAL.
    11. Juan Lin & Zhou Yu & Yehua Dennis Wei & Mingfeng Wang, 2017. "Internet Access, Spillover and Regional Development in China," Sustainability, MDPI, vol. 9(6), pages 1-18, June.
    12. Joël Cariolle & Maelan Le Goff & Olicier Santoni, 2019. "Digital vulnerability and performance of firms in developing countries," Working papers 709, Banque de France.
    13. Pan, Maomao & Bai, Min & Ren, Xiaoxiao, 2022. "Does internet convergence improve manufacturing enterprises’ competitive advantage? Empirical research based on the mediation effect model," Technology in Society, Elsevier, vol. 69(C).
    14. Maurseth, Per Botolf, 2018. "The effect of the Internet on economic growth: Counter-evidence from cross-country panel data," Economics Letters, Elsevier, vol. 172(C), pages 74-77.
    15. Zhao, Liupeng & Zhang, Ke, 2024. "Labor protection and corporate labor investment efficiency - Evidence based on the implementation of the "Labor Contract Law"," Finance Research Letters, Elsevier, vol. 69(PA).
    16. Shiguang Li & Yixiang Tian, 2023. "How Does Digital Transformation Affect Total Factor Productivity: Firm-Level Evidence from China," Sustainability, MDPI, vol. 15(12), pages 1-17, June.
    17. Yicheng Song & Yuantao Jiang, 2024. "How Does the Digital Economy Drive the Optimization and Upgrading of Industrial Structure? The Mediating Effect of Innovation and the Role of Economic Resilience," Sustainability, MDPI, vol. 16(4), pages 1-16, February.
    18. Fossen, Frank M. & Sorgner, Alina, 2022. "New digital technologies and heterogeneous wage and employment dynamics in the United States: Evidence from individual-level data," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    19. Eleni Laitsou & Antonios Kargas & Dimitrios Varoutas, 2020. "How ICT affects economic growth in the Euro area during the economic crisis," Netnomics, Springer, vol. 21(1), pages 59-81, December.
    20. Yang Liu & Yaojun Fan & Yifan Wang & Jiayu Huang & Hu Xun, 2024. "City innovation ability and internet infrastructure development: Evidence from the “Broadband China” policy," Bulletin of Economic Research, Wiley Blackwell, vol. 76(1), pages 121-146, January.

    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:gam:jsusta:v:17:y:2025:i:1:p:260-:d:1558686. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.