Labor Cost and Enterprise Digital Transformation:Mechanism Discussion and Empirical Evidence
In recent years,the fading of China's demographic dividend and escalating labor costs have created significant challenges for the manufacturing sector.Companies face growing pressure to adapt and sustain competitiveness amid these rising costs.This paper investigates whether digital transformation offers a viable strategic solution for companies to address high labor expenses.While existing studies often examine corporate digital transformation from the angles of policy support,competitive pressure,and technological innovation,few directly analyze the role of labor costs as a driving force behind this shift.This study uses a dataset of China's A-share listed manufacturing firms from 2007 to 2020,combined with city-level data,to explore how labor costs drive digital transformation in enterprises.Our empirical analysis confirms that rising labor costs significantly encourage companies to adopt digital practices.Furthermore,heterogeneity analysis reveals that this effect is especially pronounced in labor-intensive sectors,high-tech industries,and markets with intense competition.Labor costs drive digital transformation through three main pathways:increasing digital investment,fostering digital innovation,and optimizing human capital structure.These mechanisms illustrate how companies may strategically respond to labor cost pressures by leveraging digital advancements.Additionally,we explore the factors that influence the relationship between labor costs and digital transformation.Our findings indicate that the entrepreneurial environment on the supply side and demand-side consumption upgrades positively regulate the impact of labor costs on digital transformation.These factors strengthen the link between high labor costs and the adoption of digital strategies,providing valuable insights into the conditions under which digital transformation becomes most viable.The economic benefits of labor cost-driven digital transformation are also assessed in this paper.Our results suggest that such transformation can enhance total factor productivity(TFP)in enterprises,underscoring the broader economic implications of digital adaptation in response to labor pressures.This study makes three primary contributions.First,it expands existing literature on labor costs by viewing digital transformation beyond simple labor replacement by machines.By framing digital transformation as an integration of digital technology with industrial processes,we offer a comprehensive view of strategic responses to rising labor costs.Second,this research delves into the mechanisms by which labor costs drive"digitalization replacing people,"categorizing these effects into digital investment,innovation,and human capital structure.This framework provides a nuanced understanding of how digital transformation mitigates labor cost pressures.Finally,we identify the external factors that amplify the effectiveness of digital transformation under rising labor costs,highlighting how government policy can enhance the macro-environment to foster digital innovation.This paper reveals the internal logic of labor costs driving digital transformation and examines the external conditions that support this process.The findings offer policy implications for government agencies seeking to bridge the gap between labor costs and digital transformation,particularly in labor-intensive industries.By promoting policies that facilitate digital innovation and talent development,policymakers can help optimize the broader environment,ultimately supporting sustainable digital growth across industries.
万方数据
维普
