Does dialect diversity improve enterprise employment? Evidence from Chinese listed companies

Abstract

The employment effect of dialect diversity is not only a fundamental issue in research related to Chinese dialects; it is also of great significance for improving regional employment levels, enhancing people's livelihoods, and driving economic development in China. This paper uses data on regional dialects and listed companies in China from 2011 to 2021 to thoroughly examine the impact of dialect diversity on enterprise employment and finds that there is a significant positive correlation between them. In terms of internal mechanisms, dialect diversity can enhance enterprise employment levels by expanding the scale of their production and innovation. Further examination reveals that in terms of factor intensity, labor and production exhibit a more pronounced employment effect of dialect diversity in enterprises than capital and R&D innovation. In terms of ownership types, the employment effect of dialect diversity is strongly reflected in samples of private and foreign-funded enterprises, while its significance is not as apparent in state-owned or collective enterprises. In terms of region types, dialect diversity significantly improves the employment of enterprises in the eastern region, but suppresses the employment of enterprises in other regions. This study provides conclusions on the employment effect of dialects within Chinese enterprises. It also lays a crucial foundation for implementing scale enhancement mechanisms in production and innovation, improving regional support policies and enterprise management systems, and leveraging the employment promotion effect of dialect diversity.