Evaluating impacts of ICT development on wages of workers

Author:

Shi Zheng1ORCID

Affiliation:

1. Law School, Ningbo University, Ningbo, China; Strategic Talent Research Center, Beijing Normal University, Beijing, China

Abstract

At the provincial level, there is a research gap in discussing the causality and internal mechanism between ICT development and wages of workers. The study utilizes the province-level balanced panel data over the period 2006–2021 in China, clarifies the impact and internal mechanism of ICT development on wages of workers, and uses the DID method to identify the causality between the two. This study found that there is a positive correlation between ICT development and workers’ wages, and skill level is a mediate transmission channel. Moreover, ICT development has a positive impact on workers’ wages in the central and western regions. Besides, compared to low-wage workers, high-wage workers gain more information dividends. The findings of this study have reference significance for policymakers. First, for the central and western provinces in China, it is necessary to actively develop the ICT industry, cultivate high-tech enterprises, and improve local ICT development levels. Second, we should improve the skill level of workers and enhance their competitive advantage in employment. Third, each province should continue to expand the enrollment scale of higher education institutions, and improve the quality of labor force.

Publisher

Vilnius Gediminas Technical University

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