Digital Divide or Digital Welfare?

Abstract

With the widespread use of the internet, exploring how it will influence the labor market is of great significance. Based on the 2010-2018 China Family Panel Studies dataset, this paper investigates the effect of the internet on sustainable employability among Chinese aged 16-60. The empirical results of the panel double-hurdle model show that the internet can significantly enhance an individual's competitiveness in the labor market. Moreover, the heterogeneity tests show that the middle aged and older adults, freelancers, and those living in disadvantaged regions can benefit more on employability brought about by the internet. The authors define this phenomenon as the information welfare of the internet, which has narrowed the digital gap caused by the uneven development of technology among different social groups. In addition, the positive coefficient associated with internet use is driven by higher skill requirements in specific workplaces. The authors further explored the role workplace computerization has had in this process.