Exploring the driving effect of the digital economy on rural labor force's occupational transformation: Based on analysis of CFPS panel data

Abstract

This paper examines the influence of digital economy advancement on the occupational mobility of the rural workforce, utilizing microdata sourced from the China Family Panel Studies (CFPS) conducted in 2016, 2018, and 2020. Our findings reveal that the progression of the digital economy notably enhances the occupational mobility of rural laborers. Moreover, by employing the instrumental variable technique to tackle potential endogeneity concerns, we affirm the robustness of our conclusion. Mechanism tests further elucidate that, although the technological effect tends to diminish the facilitating influence of the digital economy on rural workers' occupational mobility, the digital economy, via a preference effect, significantly motivates rural workers to make decisions regarding occupational mobility, thereby overcoming mobility constraints stemming from risk aversion. Furthermore, the digital economy significantly fosters the transition of rural workers towards managerial, skilled, and service-oriented professions, while exerting a detrimental effect on employment oriented towards production.