The impact of Smart city construction on labour spatial allocation: Evidence from China

Abstract

ABSTRACT Recently, the prevalence of information technology represented by ChatGPT has aroused extensive discussions. Does the adoption of information technology lead to massive regional unemployment? It is a crucial and unresolved issue for the government, enterprise employees, and researchers. Combining the 2005–2020 panel and the smart city (SC) construction policy in China, this article employs the difference in differences (DID) method to study the impact of informatization construction on labour spatial allocation. We found that informatization construction significantly attracted labour and improved labour spatial allocation. After the SC construction policy’s implementation, compared with non-SCs, the average increase of SC pilots in the labour force is about 0.78 million people. Besides, stimulating economic growth, improving the environment, and enhancing public services are the mechanisms of the SC construction policy on labour spatial allocation. Furthermore, this policy effect has heterogeneous industry department and category characteristics. The Tertiary and secondary industry department receives a more significant impact.