Achieving the employment of higher level and quality is an important foundation and guarantee for achieving common prosperity in China. In recent years, the rapid application of digital technology in the financial field has continued to affect the resource allocation and employment structure of China’s labor market. Academia has paid attention to the impact of digital inclusive finance on employment expansion, but there is still a lack of evidence on the impact of digital inclusive finance on employment quality, especially the micro evidence of this impact. This paper uses the 2012, 2013, and 2015 data from Chinese General Social Survey (CGSS) and the index of digital inclusive finance to investigate the impact of digital inclusive finance on China’s employment quality. The research shows that in general the development of digital inclusive finance can improve the hourly wage rate and working flexibility of employees, and reduce the working hours. However, digital inclusive finance will have a negative impact on the participation of social security projects. Considering the rise of new employment patterns, this paper further explores the differences in the above effects across employment types. In fact, the negative impact of digital inclusive finance on the participation of social security projects mainly exists in the group of informal employees. For formal employees, digital inclusive finance can promote their participation in social security projects. Job satisfaction is a comprehensive index of employment quality. For self-employees, digital inclusive finance can improve their job satisfaction, while increasing hourly wage rate and reducing working hours are two important intermediary channels. For non-standard employees, digital inclusive finance will reduce their job satisfaction, and the key reason is the less participation of social security projects. Finally, this paper analyzes the heterogeneity of specific employment groups. The results show that digital inclusive finance can significantly promote the hourly wage rate of women and migrants, but it significantly reduces women’s participation in endowment insurance. A proper policy is to ensure the “availability” and “usability” of digital inclusive finance. To improve individual financial literacy and the skills of digital finance can avoid falling into the “digital divide”, so as to make digital inclusive finance effective in improving individual hourly wage rate and working flexibility as well as reducing working hours. At the same time, we should pay attention to the lack of social security in the process of employment promotion in the groups of informal employees and women to eliminate their worries. This work is of great significance to improve employment quality and individual welfare, so as to promote the goal of common prosperity.
Does Digital Inclusive Finance Promote Employment Quality?
Journal of Shanghai University of Finance and Economics Vol. 24, Issue 01, pp. 61 - 75 (2022) DOI:10.16538/j.cnki.jsufe.2022.01.005
Cite this article
Guo Qing, Meng Shichao, Mao Yufei. Does Digital Inclusive Finance Promote Employment Quality?[J]. Journal of Shanghai University of Finance and Economics, 2022, 24(1): 61-75.
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