The Impact of Differentiated Development of the Digital Economy on Employment Quality—An Empirical Analysis Based on Provincial Data from China

In the context of the digital age, the digital economy, as a new economic model that the Chinese government is currently committed to developing, has played a positive role in driving consumption and creating employment opportunities. However, the differential development characteristics of the digital economy are becoming increasingly evident. The level of digital infrastructure and the application of digital facilities in China’s eastern regions are superior to those in the central and western regions. The increasing level of differential development in the digital economy will further accelerate the cross-regional mobility of labor. For the more developed eastern regions in China, in terms of the digital economy, the ability to empower employment is relatively high, which can create more job opportunities and attract a larger labor force seeking employment opportunities. In contrast, the central and western regions face slower development in the digital economy and relatively insufficient employment-empowering capacity, leading to labor force outflow. Proper cross-regional labor mobility can enhance the efficiency of labor resource allocation. However, excessive labor force mobility can lead to imbalanced labor resource allocation, causing job shortages and reduced employment quality in regions with an excess of labor force, while labor loss regions face labor shortages and talent drain, resulting in a loss of economic vitality in those regions. Therefore, clarifying and addressing the various negative impacts brought about by the differential development of the digital economy are crucial for improving the overall employment quality in the digital economy era. However, there is currently limited research focused on the influence of differential development levels of the digital economy on employment quality. This study delves into the impact of the differential development levels of the digital economy on employment quality and analyzes the underlying mechanisms. Based on panel data from 31 provinces and cities in mainland China from 2011 to 2020, this study uses the entropy method to calculate both the employment quality index and the digital economy index. Building upon the digital economy index, the Gini coefficient of the digital economy development level in various regions in China is calculated using the Gini coefficient formula. Subsequently, a two-way fixed-effects model empirically analyzes the impact of China’s differential development levels