The Employment Effects and Mechanisms of The Implementation of Rural E-commerce Development Policy in China
Based on the micro panel dataset of China Family Panel Studies(CFPS)from 2010-2020,this paper depicts the development of government-supported e-commerce with the National Rural E-commerce Comprehensive Demonstration Policy,and employs a staggered difference-in-differences strategy to examine the effects of the policy on rural residents'off-farm employment.Empirical results show that(1)the implementation of the policy has significantly enhanced off-farm employment,particularly the off-farm employment without leaving hometown and inclusive off-farm employment Specifically,after the implementation of the policy,the probability of off-farm employment in the sample increased by 14.4%,that of local off-farm employment increased by 15.1%,and that of working as a migrant worker decreased by 4.3%.(2)The off-farm employment effect of the implementation of the policy is prominent among the female,middle-aged,and elderly groups,households with disadvantaged capital endowments,and those in former poor-stricken counties,the traditional revolutionary base,middle-west areas,and areas with e-commerce potential.(3)Furthermore,the mechanism analysis from the perspective of industrial evolution and organizational incentives shows that the implementation of the policy,on one side,decreases the non-agricultural employment costs of rural residents by promoting the establishment of rural enterprises and upgrading the county-level industrial structure.On the other side,it increases the non-agricultural employment preference of rural residents by amplifying peer income incentives and individual reputation incentives.To conclude,with the help of the development of e-commerce,multiple-channel guidance and protection of non-agricultural employment of rural residents,and the formation of a balanced allocation of local rural labor forces between agricultural and non-agricultural sectors are conducive to the revitalization of rural industries and common prosperity.