The Impact Of Enterprise Digital Transformation On Labor Income Share

At present,Digital transformation is the trend of world economic development,and our government also attaches great importance to the development of digital economy.Income distribution is also a hot topic of concern for the current government and academia.The report of the 20th National Congress of the Communist Party of China mentioned that efforts should be made to increase the proportion of residents’ income in national income distribution and the proportion of labor remuneration in initial distribution;Improve the lifelong vocational skills training system and promote the resolution of structural employment conflicts.This paper attempts to explore the impact of Digital transformation on the share of labor income in the context of the digital era.As a combination of digital technology and finance,digital finance can optimize resource allocation in the process of Digital transformation,and then affect the income distribution of various elements.In order to clarify the relationship between enterprise Digital transformation and labor income share,this paper takes China’s A-share listed companies as the research object,uses the corporate financial report data from 2007 to 2020 to study the impact of enterprise Digital transformation on labor income share,and discusses the moderating effect of digital finance on the above impact.This paper constructs a fixed effect model for benchmark regression analysis,and obtains the results that the Digital transformation of enterprises has a significant positive impact on the share of labor income.On this basis,a moderating effect model is constructed by introducing digital financial variables and their interaction with Digital transformation.The regression results show that digital finance has strengthened the positive impact of Digital transformation on the share of labor income.After that,this paper conducts a robustness test by using multi-dimensional methods such as Digital transformation,labor income share index replacing the original variable and reprocessing samples.When dealing with endogeneity issues,this article selects the instrumental variable method and the lagged one period related variable approach,and the regression results are still consistent with the benchmark results.In terms of mechanism analysis,this article explores productivity effects,enterprise innovation,and changes in human capital structure from three aspects.For the productivity effect,the total factor productivity of enterprises calculated based on LP method is first introduced into the regression model as the proxy variable of productivity,and the result that Digital transformation can promote the improvement of total factor productivity of enterprises is obtained.Then,the existing research results are used to explain the negative impact of the improvement of total factor productivity of enterprises on the share of labor income.For enterprise innovation,this paper introduces the enterprise innovation input intensity as a proxy variable into the regression model,and obtains the result that Digital transformation can significantly promote the enterprise innovation input intensity.Then,it is grouped and regressed again according to the level of enterprise innovation input.The final result shows that the higher the innovation input,the greater the promotion effect of Digital transformation on the labor income share.For the change of human capital structure,this paper proves that the employment creation effect of Digital transformation is greater than the substitution effect by using the number of employees and per capita salary indicators;After that,the change of internal human capital structure is discussed from two aspects of employee positions and skills.The final result shows that the Digital transformation of the enterprise has increased the income share of ordinary employees,narrowed the internal income gap,increased the proportion of highly skilled employees,and optimized the human capital structure;In terms of both scale and structure,the Digital transformation has increased the share of labor income.In terms of heterogeneity,the Digital transformation of enterprises in labor-intensive and technology intensive industries,high-tech enterprises and enterprises applying artificial intelligence technology and cloud computing technology has a more significant role in promoting the share of labor income,and the role of non-state-owned enterprises is slightly greater than that of stateowned enterprises.Based on the research results,this paper puts forward relevant suggestions from three aspects:first,the government can coordinate the development direction of the digital economy,focus on the construction of information infrastructure,actively promote the construction of a digital inclusive financial system,and assist enterprises in Digital transformation;At the same time,pay attention to the changes in the skill structure of the labor force,and introduce talent support policies to alleviate the negative impact of Digital transformation on low skilled labor.Second,enterprises should actively embrace Digital transformation,build new digital formats,improve their total factor productivity,consolidate their innovation capabilities,and maintain their core competitiveness.Third,for workers,they should constantly improve their education level and knowledge literacy,join the digital wave with enterprises,and adapt to the needs of enterprises for highly skilled talents in Digital transformation.