Research on the impact of digital economy on labor resource allocation: Evidence from China

Abstract

This paper establishes a coherent framework for delineating the nexus between the digital economy and the subjective efficacy of labor resource allocation. It elucidates the theoretical underpinnings of the digital economy’s impact and its channel effects on the efficiency of labor allocation. Within the digital economy landscape, the phenomena of survivorship bias, digital divide, and algorithmic hegemony wield substantial sway over the efficiency of labor market allocation. Empirical analysis, conducted through a cross-sectional data model, validates the theoretical framework. The findings demonstrate that the digital economy markedly diminishes the subjective efficiency of labor allocation. Notably, this inhibitory effect is more pronounced among female workers, households with multiple residences, the non-unmarried demographic, and individuals over the age of 40, with the most pronounced effect observed among those aged over 60. In the examination of the causative mechanisms, it is discerned that the digital economy attenuates the subjective efficiency of labor allocation by workers through three conduits: alterations in social and economic status, shifts in living standards, and modifications in workplace comfort.