How does the digital economy and society index (DESI) affect labor market indicators in EU countries?

Abstract

OBJECTIVE: This study aims to determine the effects of the DESI (connectivity, human capital/digital skills, use of internet service by citizens, integration of digital technology and digital public services) on labor market indicators (labor market insecurity, long-term unemployment rate, employment rate, and personal earnings). METHODS: In the study, the 2018 DESI data, the 2018 Better Life Index (job) data and 23 EU countries were analyzed. In the analysis, the SmartPLS 3.0 program was executed with 23 cases and 5000 bootstraps. RESULTS: It was concluded that an increase in the DESI has increased employment rate and personal earnings, which are positive labor market indicators (t: 15,929; 0,849) and has decreased long-term unemployment rate and labor market insecurity, which are negative labor market indicators (t: 3,685; –0,535). CONCLUSIONS: As a result, digitalization in EU countries for the year 2018 has proved that the labor market indicators were improving.