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Digital transformation and corporate Labor costs for ordinary employees

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  • Ying Wu
  • Li Deng
  • Wen Huang

Abstract

This paper examines the impact of digital transformation on the labour costs of ordinary employees. Using a large sample of Chinese-listed firms from 2007 to 2021, we find that digital transformation leads to an increase in labour costs for ordinary employees. This finding remains valid after a battery of sensitivity tests and is more prominent for non-state-owned enterprises and firms in the information technology industry. Mechanism tests show that digital transformation affects corporate labour costs for ordinary employees by changing the human capital structure.

Suggested Citation

  • Ying Wu & Li Deng & Wen Huang, 2025. "Digital transformation and corporate Labor costs for ordinary employees," Applied Economics Letters, Taylor & Francis Journals, vol. 32(2), pages 165-169, January.
    • Handle: RePEc:taf:apeclt:v:32:y:2025:i:2:p:165-169
    DOI: 10.1080/13504851.2023.2259588
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