Redressing labor factor mismatch in Chinese resource-based cities: Does digital economy matter?

The digital economy serves as a key driver in reshaping economic development by altering the supply structure of market factors and influencing labor resource allocation. Based on panel data from 2011 to 2019 for resource-based prefecture-level cities in China, this study empirically examines the im...

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Main Authors: Haijie Wang, Tianyi Zhang, Yanchao Feng
Format: Article
Language:English
Published: Elsevier 2025-06-01
Series:Sustainable Futures
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2666188825001467
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author Haijie Wang
Tianyi Zhang
Yanchao Feng
author_facet Haijie Wang
Tianyi Zhang
Yanchao Feng
author_sort Haijie Wang
collection DOAJ
description The digital economy serves as a key driver in reshaping economic development by altering the supply structure of market factors and influencing labor resource allocation. Based on panel data from 2011 to 2019 for resource-based prefecture-level cities in China, this study empirically examines the impact of the digital economy on labor factor mismatch using both static and dynamic panel models. The findings reveal that the digital economy significantly exacerbates labor factor mismatch, leading to decreased labor allocation efficiency. After replacing different measures of labor factor mismatch, the results remain robust. Heterogeneity analysis shows that the mismatch effect is stronger in central and western cities but statistically insignificant in eastern cities. Growth and mature cities, particularly regenerative cities, face greater mismatch due to accelerated labor force iteration and resource misallocation. However, the role of dominant resource types in shaping mismatch remains inconclusive. Finally, mechanism analysis identifies government intervention as a key channel, amplifying mismatch through automation-driven labor displacement. Industrial structure optimization and technological innovation, however, show weak mediating effects, reflecting structural rigidities in China's economy. Overall, these findings deepen the understanding of digital transformation's labor market consequences and inform policies for optimizing labor allocation.
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spelling doaj-art-6cd05899e0d44adaa8cc737dc96d6aa92025-08-20T02:39:58ZengElsevierSustainable Futures2666-18882025-06-01910057610.1016/j.sftr.2025.100576Redressing labor factor mismatch in Chinese resource-based cities: Does digital economy matter?Haijie Wang0Tianyi Zhang1Yanchao Feng2Business School, Zhengzhou University, Zhengzhou 450001, ChinaBusiness School, Zhengzhou University, Zhengzhou 450001, ChinaCorresponding author.; Business School, Zhengzhou University, Zhengzhou 450001, ChinaThe digital economy serves as a key driver in reshaping economic development by altering the supply structure of market factors and influencing labor resource allocation. Based on panel data from 2011 to 2019 for resource-based prefecture-level cities in China, this study empirically examines the impact of the digital economy on labor factor mismatch using both static and dynamic panel models. The findings reveal that the digital economy significantly exacerbates labor factor mismatch, leading to decreased labor allocation efficiency. After replacing different measures of labor factor mismatch, the results remain robust. Heterogeneity analysis shows that the mismatch effect is stronger in central and western cities but statistically insignificant in eastern cities. Growth and mature cities, particularly regenerative cities, face greater mismatch due to accelerated labor force iteration and resource misallocation. However, the role of dominant resource types in shaping mismatch remains inconclusive. Finally, mechanism analysis identifies government intervention as a key channel, amplifying mismatch through automation-driven labor displacement. Industrial structure optimization and technological innovation, however, show weak mediating effects, reflecting structural rigidities in China's economy. Overall, these findings deepen the understanding of digital transformation's labor market consequences and inform policies for optimizing labor allocation.http://www.sciencedirect.com/science/article/pii/S2666188825001467Digital economyLabor factor mismatchIntermediary effectTechnological innovation
spellingShingle Haijie Wang
Tianyi Zhang
Yanchao Feng
Redressing labor factor mismatch in Chinese resource-based cities: Does digital economy matter?
Sustainable Futures
Digital economy
Labor factor mismatch
Intermediary effect
Technological innovation
title Redressing labor factor mismatch in Chinese resource-based cities: Does digital economy matter?
title_full Redressing labor factor mismatch in Chinese resource-based cities: Does digital economy matter?
title_fullStr Redressing labor factor mismatch in Chinese resource-based cities: Does digital economy matter?
title_full_unstemmed Redressing labor factor mismatch in Chinese resource-based cities: Does digital economy matter?
title_short Redressing labor factor mismatch in Chinese resource-based cities: Does digital economy matter?
title_sort redressing labor factor mismatch in chinese resource based cities does digital economy matter
topic Digital economy
Labor factor mismatch
Intermediary effect
Technological innovation
url http://www.sciencedirect.com/science/article/pii/S2666188825001467
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AT tianyizhang redressinglaborfactormismatchinchineseresourcebasedcitiesdoesdigitaleconomymatter
AT yanchaofeng redressinglaborfactormismatchinchineseresourcebasedcitiesdoesdigitaleconomymatter