The role of digital skills in the self-employment intentions of young rural labor

Abstract

This research primarily focuses on assessing the impact of digital skills on the future career decisions of young rural laborers, a group typically at a disadvantage concerning skills and professional qualifications when compared to their urban counterparts. To conduct this study, a probit probability regression model was employed, and data was collected through a survey involving 398 young rural laborers from the Northern Midlands and Mountains region of Vietnam. The findings of this study unequivocally illustrate the multifaceted influence of specific digital skills on decisions related to self-employment. Digital operational skills and digital creative skills were found to be associated with the choice of formal, wage-earning employment, whereas digital social skills correlated with a higher likelihood of pursuing self-employment. This highlights the imperative need to establish specific and diverse policies to cater to the distinct requirements of various labor market segments. Furthermore, in light of the currently limited digital skill levels, laborers should place particular emphasis on enhancing their skill sets to ensure their ability to seek or maintain employment with competitive incomes or to prepare for entrepreneurial opportunities. It is equally important to scrutinize social safety policies designed for self-employed laborers to guarantee the sustainability of the self-employment model.