Mechanisms and effect assessment of smart city policy pilots on employment resilience: Empirical evidence based on 275 sample cities in China

Yafei Wang, Zihan Zhao, Jing Liu, Ying Bai and Zhixiong Tan

Economic Analysis and Policy, 2024, vol. 83, issue C, 631-651

Abstract: In the context of a global economic slowdown and structural shifts, comprehending labor market stability is crucial for devising effective macro-employment strategies. This research introduces an innovative framework to analyze employment resilience in the wake of China's smart city pilot policy. Utilizing data from 275 prefecture-level cities across China, spanning 2008 to 2020, the study delves into the beneficial effects of the smart city pilot policy on employment resilience. It employs a dual approach, integrating the Differences-in-Differences method (DID) with robustness analysis. Findings indicate that employment resilience in smart city pilot cities is approximately 0.58% higher compared to non-pilot cities. Factors such as location, size, and city type exhibit varying influences on this outcome. The research further reveals that entrepreneurial activities significantly mediate the link between smart city policies and employment resilience. Additionally, the concentration of manufacturing and productive services, along with their interplay, demonstrates notable moderating effects. This investigation broadens the economic research scope regarding smart cities and offers fresh empirical insights into the labor market impacts of smart city pilot policies, serving as a valuable guide for policymakers in managing employment markets.

Keywords: Smart city pilots; Employment resilience; Differences-in-differences method; Entrepreneurial activity; Industrial agglomeration (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:83:y:2024:i:c:p:631-651

DOI: 10.1016/j.eap.2024.07.011

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