Research On The Impact Of Digital Transformation On Labor Income Share Of Enterprises

"Digitization" and "common prosperity" are the direction and goal of our economic development.Digitization with its unique advantages makes it convenient for grassroots employees to collect and process information,improve the status and income of ordinary workers,so as to narrow the income gap for our country and realize common prosperity.Under the dual background of "digitalization" and "common prosperity",this thesis attempts to study how the digital transformation of enterprises can promote the increase of the share of labor income of enterprises to promote common prosperity.This thesis uses the data of A-share listed companies in Shanghai and Shenzhen from2007 to 2020 as a sample to evaluate the impact of digital transformation on the labor income share of enterprises.First,on the basis of previous theoretical analysis,the multivariate linear model is used to examine the impact of digital transformation on the labor income share of enterprises,and alleviates the endogeneity problem to some extent by introducing instrumental variables,using multi-period DID model and a series of robustness tests.Secondly,the intermediary effect model is used to verify the mechanism channel of digital transformation affecting the labor income share of enterprises.Finally,in the further expansion analysis,on the one hand,the adjustment effect of internal information transparency on the influence of digital transformation on labor income share of enterprises is analyzed by using the method of interaction term,and the heterogeneity of the enhancement effect of digital transformation on labor income share is discussed.On the other hand,using the data of ordinary employees’ labor income and senior executives’ labor income,the thesis investigates the influence of digital transformation on internal income equity.This thesis finds that digital transformation has a significant positive impact on the labor income share of enterprises.After selecting lag term,adding fixed effect of enterprises,introducing instrumental variables,using multi-stage DID model to alleviate endogenous problems,and conducting multi-think robustness test,the conclusion is still reliable.Channel analysis verifies that financing constraints and the enhancement of independent research and development willingness are important channels for digital transformation to affect the labor income share of enterprises.In the further analysis,the internal information transparency of enterprises weakens the promotion effect of digital transformation on the labor income share of enterprises.The heterogeneity test shows that the effect of digital transformation on the labor income share of high-tech enterprises and non-state-owned enterprises is significantly higher than that of non-high-tech enterprises and state-owned enterprises.For enterprises whose directors have research and development background,digital transformation significantly increases the labor income share.However,for enterprises whose directors have no research and development background,the impact of digital transformation on the labor income share of enterprises is not significant.From the perspective of internal employee income distribution,it is found that digital transformation increases the income of ordinary employees more than that of senior executives,which promotes the fairness of internal income distribution.According to the research conclusions,this thesis puts forward the following policy recommendations: First,accelerate the digital transformation of enterprises and promote the upgrading of China’s employment structure with the help of digital transformation.Second,strengthen the digital skills training of unskilled workers,improve the comprehensive quality of low-skilled workers,and optimize the labor supply structure.Third,the government should improve the social distribution system,exercise regulatory and supervisory functions,and ensure the income of low-skilled labor while guiding enterprises to carry out digital transformation.