Information technology and the labor market in China

Fan Zhang, Lei Meng, Wen Sun and Yanwu Si

Economic Analysis and Policy, 2021, vol. 72, issue C, 156-168

Abstract: In this paper, we examine the influence of investment of corporate capital, which we capture through heterogeneous company information technology utilization, on labor demand and labor income share. We find that increased investment in information technology by enterprises is associated with a general decrease in the proportion of labor income and the demand for labor. We also find that if the market power of enterprises in the industry is greater, the increase in investment of enterprise information technology capital is even less conducive to the willingness of enterprises to hire workers. Our results have implications for guidance towards corporate (information technology) investment decision-making.

Keywords: Information capital; Employment; Labor income share (search for similar items in EconPapers)
JEL-codes: D12 M12 O32 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:72:y:2021:i:c:p:156-168

DOI: 10.1016/j.eap.2021.06.015

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