Mechanism analysis of the impact of regional digital transformation on the employment quality in the perspective of labor force structure

Abstract Regional digital transformation has revitalized economic development and revolutionized the employment landscape of the labor force. The study employs a dynamic panel system GMM model to investigate the direct and indirect effects of regional digital transformation on the employment quality of China’s labor force using panel data from 31 mainland provinces. The findings suggest that regional digital transformation initially has a negative impact on employment quality, but that it continues to improve continuously as it progresses, showing a “U-shaped” trend. A nonlinear mediation analysis across industry, sector, and skill levels of the labor force structure uncovers a complex, bridging effect on employment quality. This study provides valuable insights for improving employment policies and promoting full employment, highlighting the dynamic interplay between regional digitization and the labor market.