Digital Economy, Urbanization and Labor Skill Structure: An Empirical Analysis Based on Provincial Panel Data

Abstract

Based on provincial panel data from 2013-2021, this paper explores the relationship between digital economy, urbanization, and labor skill structure. By building a bi-directional fixed effect model and introducing interaction terms, the empirical findings show that digital economy has a significant positive promoting effect on the skill structure of the labor force, and urbanization plays a moderating role in it, and this promoting effect will be further enhanced with the improvement of urbanization. Accordingly, the following policy recommendations are put forward: First, strengthen the construction of digital economy and promote the development and application of digital technology. Second, promote urbanization and optimize the distribution of population and industries. Third, strengthen education and training to upgrade the skills of the workforce.