Digital transformation and corporate Labor costs for ordinary employees

Ying Wu, Li Deng and Wen Huang

Applied Economics Letters, 2025, vol. 32, issue 2, 165-169

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.

Date: 2025
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DOI: 10.1080/13504851.2023.2259588

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