Impact of digital empowerment on labor employment in manufacturing enterprises: Evidence from China

Many studies have examined the influence of digital technologies, such as robots and artificial intelligence, on enterprise labor, but few have investigated the underlying mechanisms and impact paths of digital empowerment on labor employment. Therefore, this study uses data on manufacturing enterprises listed on China's Shanghai and Shenzhen A-share markets from 2011 to 2020, and applies a panel fixed effect model to test the relationship between digital empowerment and labor employment, and the mechanisms underlying this relationship. We find that digital empowerment increases labor employment. However, the effects are heterogeneous: firms with better corporate governance, more competitive industry, and less favorable regional business environments are more motivated to optimize the structure of their labor resources. Through robustness test and mediation effect model test, we find that digital empowerment can improve enterprise human capital by increasing economies scale and managerial efficiency, especially the employment of R&D and innovation personnel and management personnel; it can also affect the amount of human capital by improving total factor productivity.