Research On The Impact Of Enterprise Digitalization On The Share Of Labor Income

In recent years,with the rapid progress of digital technology,digital economy has become an important factor affecting the development of the global economy,and also a key engine to promote the high-quality development of China’s economy.China’s plan for the digital economy has risen to a strategic height.Many national level reports have highlighted the need to promote the healthy development of the digital economy,take data as a key factor in production factors,clarify the direction of market-oriented reform of data factors,and accelerate the development of the digital economy.In this context,the digital transformation of enterprises has become the strategic direction of enterprise development in the future.However,as a direct subject that affects income distribution and employment,enterprises’ digital transformation process will have a huge impact on workers.In the context of China’s gradual promotion of common prosperity,the Chinese government should formulate relevant policies so that enterprises’ digital transformation can better promote the distribution of factor income and promote common prosperity.Therefore,from the perspective of enterprise digital transformation and labor income share,this paper mainly discusses whether enterprise digital transformation will increase labor income share? In order to enrich the research on this issue,what is the mechanism of its impact on the share of labor income? How does the digital transformation of enterprises affect the income share of workers with different skills? In addition,due to differences in industry development,the effect of enterprise digital transformation on promoting labor income share shows obvious heterogeneity.Is the impact of enterprise digital transformation on labor income share of different industries different?In this regard,this paper uses the method of combining theory with practice,combined with the impact of enterprise digitalization on enterprises,to explore the mechanism of enterprise digitalization transformation affecting the share of labor income,so as to provide theoretical support and empirical evidence for promoting the policy of common prosperity.This paper focuses on the following three parts:First,Theoretical analysis on the mechanism of the impact of enterprise digital transformation on labor income share.This chapter uses nested CES production functions to build a labor income share analysis framework containing digital technology and traditional production methods,and conducts in-depth research on the impact of enterprise digitalization on labor income share;Secondly,this paper deeply analyzes the mechanism of the impact of enterprise digitalization on the share of labor income,that is,enterprise digitalization transformation affects the level of enterprise wage rate by changing the demand of workers with different skills,thus affecting the share of labor income.Then the research hypothesis is put forward according to the theoretical analysis.Second,The digital transformation of enterprises affects the test of labor income share.This chapter uses measurement methods to test the impact of enterprise digitalization on the share of labor income and its mechanism.First,use Python programs to capture the information in enterprise annual reports to build indicators to measure the degree of enterprise digitalization,and use a two-way fixed effect model to test.The research results show that: first,the digital transformation of enterprises can promote the share of labor income.Second,the promotion effect of enterprise digital transformation on labor income share has industry heterogeneity.Retail industry,manufacturing industry,Internet service industry and other industries that have better complementarities with digital technology have a more obvious role in promoting labor income share through digital transformation than transport industry,service industry and other industries that have less complementarities with digital technology.The digital transformation of the technology intensive industries whose factors of production are easy to change and the labor-intensive industries whose factors of production are more difficult to change are more obvious than the asset intensive industries whose factors of production are difficult to change.Third,different levels of enterprise digital transformation have different impacts on the share of labor income.The digital transformation of enterprises at the "practical application level" has a greater role in promoting the share of labor income than the digital transformation of enterprises at the "bottom technology level".Fourth,the wage rate has played a significant role as an intermediary transmission mechanism in the process of the digital transformation of enterprises affecting the share of labor income.Third,The impact of enterprise digital transformation on the income share of workers with different skills.This chapter further analyzes the impact of enterprise digital transformation on workers with different skills.Divide workers into high skilled workers and low skilled workers through education data and calculate their labor income share,to test the impact of enterprise digital transformation on the income share of different skilled workers.The research results show that: first,digital transformation can promote the increase of income share of highly skilled workers,while the decrease of income share of low skilled workers.Second,the impact of enterprise digital transformation on the income share of high-and low skilled workers has industry heterogeneity,mainly due to the business characteristics of the industry.Third,the impact of enterprise digital transformation on the income share of high-and low skilled workers has regional heterogeneity.Fourth,the impact of digital transformation of enterprises at different levels on the income share of workers with different skills is heterogeneous.The positive impact on the income share of highly skilled workers and the negative impact on the employment of low skilled workers from the enterprise digital transformation of "bottom technology application" are greater than those from the enterprise digital transformation of "practical application level".On this basis,according to the above theoretical and empirical research results,this paper puts forward the following policy recommendations: First,in the process of promoting the digital transformation of enterprises,we should comprehensively consider the issue of income distribution,introduce the worker welfare evaluation system,and ensure the social welfare of workers.Second,promote the deep integration of digital technology and traditional production methods,increase the share of labor income,layout digital technology innovation projects around the development needs of traditional industries,and eliminate the "island phenomenon" in scientific and technological innovation.Third,strengthen the protection of low skilled workers.We will improve the social security system,make the unemployment insurance system universal and reasonable,and optimize the minimum wage system.Fourth,implement the enterprise digital transformation strategy guided by classification.Focus on industries that have dynamic links with most economic sectors(such as manufacturing,retail,Internet services),maximize the benefits of digital technology,and stimulate overall economic growth and employment creation.