Digital Government Construction and Employment Stability: Promoting Equity or Deepening Disparities?

Zijie Wang, Xin Zhao, Sala Dariusz, Wanzhen Li and Irum Shahzadi

Politická ekonomie, vol. preprint

Abstract: Amid the rapid expansion of the digital economy, digital government construction has emerged as a vital instrument for advancing the modernization of national governance systems and promoting high-quality economic growth. Drawing on institutional theory, this study investigates the impact of digital government construction on enterprise employment levels and the mechanisms through which this influence operates. Using panel data from Chinese listed companies between 2019 and 2023, a fixed-effects model is employed for empirical analysis. The findings reveal that digital government development significantly enhances enterprise employment levels, a conclusion that remains robust after controlling for firm- and region-specific characteristics. Specifically, this positive effect operates through two synergistic pathways: an innovation-driven mechanism that facilitates digital transformation and sector integration, and an efficiency-enhancing mechanism that boosts competitiveness by optimizing resource allocation. Furthermore, the analysis highlights structural variations in these effects, showing they are more pronounced in eastern regions, non-resource-based cities, state-owned enterprises, and firms with high R&D investment. Ultimately, the study underscores the dual role of digital government in fostering technological advancement in tech sectors while accelerating sustainable transformation in polluting industries. These integrated findings provide empirical evidence for deepening digital governance reforms to promote more equitable and inclusive employment growth.

Keywords: Digital Government Construction; Employment Stability; Institutional Theory; Innovation-Driven; Efficiency Enhancement (search for similar items in EconPapers)
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DOI: 10.18267/j.polek.1550

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