Digitalization of Manufacturing Input, Employment Skill Structure and Skilled-unskilled Wage Gap
HAO Neng1, LIU Dexue1, WU Yunxia2,3, ZENG Lin1
1. School of Economics, Jinan University, Guangzhou 510632, China; 2. School of Economics and Management, North University of China, Taiyuan 030051, China; 3. Institute of International Economics, Nankai University, Tianjin 300071, China
Abstract Based on the micro-data of China’s listed companies from 2007 to 2020, this paper examines the impact of input digitalization in manufacturing on the employment skill structure and skilled-unskilled wage gap of Chinese enterprises with fixed effect model. There are following findings: (1) Input digitalization is generally conducive to improving the scale of employment, increasing the proportion of high-skilled employees, reducing the proportion of medium and low skilled employees, and promoting the upgrading of employment structure; (2) Input digitalization not only promotes the upgrading of employment skill structure, but also expands the skilled-unskilled wage gap between high skilled and low skilled employees in enterprises by increasing the proportion of high skilled and technical employees; (3) Heterogeneity analysis shows that input digitalization based on machine technology can bring about both high skill employment creation and medium and low skill employment destruction, while input digitalization based on non-machine technology has no significant effect on employment. The impact of input digitalization on the upgrading employment structure and widening skilled-unskilled wage gap is significant for companies in areas with a high level of digital economic development. However, the impact on companies in areas with a low level of digital economic development is not significant. For companies with high spending on education and training, input digitalization will create job creation and destruction but not narrow the skilled-unskilled wage gap, while the effect on companies that spend less on education and training is not significant, widening the skilled-unskilled wage gap. Therefore, while promoting the digital transformation of enterprises, the government should comprehensively enhance the premium ability of medium and low skilled workers, improve the income distribution policy and social welfare system, prevent the income gap from widening, and lay a micro foundation for realization of common prosperity.