Analysis of the Relationship between Digital Economy Response to Employment and Inter-Industry Impact Effects

Abstract

Employment is the foundation of people’s livelihood, and has always been a hot topic in society. Nowadays, there are both risks and opportunities for employment in China’s digital economy. In this context, by studying the characteristics, development trends, and generation mechanisms of the digital economy, this paper uses national and provincial employment panel data from 2014-2019, establishes PVAR models and linear regression models, conducts empirical analysis, and explores the response relationship of the digital economy on employment, the aggregate effect, and the destruction and creation effects on employment among different industries, and uses the F-test with Hausman. The robustness test analysis was conducted using the F-test and the Hausman test. Conclusions: 1) The response of the digital economy to employment shows a positive trend, followed by a negative trend and finally stabilizes. 2) The digital economy has a destructive effect on employment in the primary and secondary industries. 3) The digital economy has a creation effect on employment in the tertiary industry. Based on this, policy recommendations are proposed: adjusting and improving existing legislation, vigorously developing the platform economy, and strengthening digital talent training and digital skills training.