Labor protection and the digital transformation of enterprises: Empirical evidence from China's social insurance law

Yuhong Huang and Yajia Gao

Finance Research Letters, 2023, vol. 57, issue C

Abstract: Considering the implementation of the Social Insurance Law (SIL) as a quasi-natural experiment, we investigate the impact of labor protection on the digital transformation of enterprises. Our findings demonstrate that the SIL markedly expedites the digital transformation of enterprises. Mechanism analysis indicates that the SIL drives enterprises to shift their employment structure and provides important human capital conditions for digital transformation. The implementation of the law also helps to enhance the growth of enterprises, accelerating their digital transformation. Furthermore, non-state-owned and highly financing-constrained enterprises are more likely to respond to the reinforcement of labor protection by means of digital transformation.

Keywords: Enterprise digital transformation; Labor protection; Digital economy (search for similar items in EconPapers)
JEL-codes: D22 G38 H32 (search for similar items in EconPapers)
Date: 2023
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:finlet:v:57:y:2023:i:c:s154461232300541x

DOI: 10.1016/j.frl.2023.104169

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