digital economy

  • 详情 Minimum Wage and Strikes: Evidence from China
    This study examines whether and how minimum wage hikes affect workers’ strikes in the context of China. We show that minimum wage significantly increases strikes at the city-level, and this effect is mainly motivated by demands for unpaid wages and severance pay. Mechanism analysis reveals that workers’ strikes are caused by inevitable involuntary unemployment arising from wage hikes. In addition, the increase in workers’ strike activities is more significant in tertiary industries, which require a larger share of low-wage workers and in regions with a higher degree of digital economy and innovation. Our findings provide clear policy implications for policymakers concerned with minimum wage and unemployment.
  • 详情 Tech for Stronger Financial Market Performance: Role of AI in Stock Price Crash Risk
    The increasing awareness and adoption of technology, particularly artificial intelligence, are reshaping industries and daily life. This study explores how adopting artificial intelligence (AoAI) influences stock price crash risk for Chinese A-share listed companies between 2010 and 2020. The primary findings emphasize AoAI's significant role in reducing stock price crash likelihood, enhancing financial market performance, and mitigating manager opportunism. Further, the research identifies varied effects of AoAI on crash risk among different enterprise types, notably benefiting non-state-owned and non-foreign businesses. Additionally, the study finding supports the notion that financial analysts enhance transparency, reducing the risk of stock price crashes. These results underscore the Chinese government's role in shaping the digital economy. Overall, the study's findings remain consistent and robust across statistical methods like 2SLS, PSM, SysGMM, and instrumental variable analysis.
  • 详情 SMEs Amidst the Pandemic and Reopening: Digital Edge and Transformation
    Using administrative universal business registration data as well as primary offline and online surveys of small businesses (including unregistered self-employments) in China, we examine (i) whether digitization helps small and medium enterprises (SMEs) better cope with the COVID-19 pandemic, and (ii) whether the pandemic has spurred digital technology adoption. We document significant economic benefits of digitization in increasing SMEs' resilience against such a large shock, as seen through mitigated demand decline, sustainable cash flow, ability to quickly reopen, and positive outlook for growth. Post the January 2020 lockdown, firm entries exhibited a V-shaped pattern, with entries of e-commerce firms experiencing a less pronounced immediate drop and a quicker rebound. Moreover, the pandemic has accelerated the digital transformation of existing firms and the industry in multiple dimensions (e.g., altering operation scope to include e-commerce, allowing remote work, and adopting electronic information systems). The effect persists more than one year after reopening, and is more pronounced for certain sectors, firms in industrial clusters, and areas with more digital inclusion but less financial efficiency, constituting initial evidence for the long-term impact of the pandemic and the supposedly transitory mitigation policies.
  • 详情 Cyber Income Inequality
    We study the income inequality among streamers using the administrative data of a leading Chinese live-streaming platform. The live-streaming technology enables a superstar to produce new entertainment products matched with demand and occupies a larger market share. Imagine an extreme case; the best streamer hosts live for 24 hours, earns all possible income, and leaves zero time for other streamers. Our data show that the income distribution of the highest-paid streamers follows Zipf’s Law and appears to be even more concentrated than any offline business: NBA top players, Forbes celebrities, and billionaires. Income inequality increased rapidly as the platform expanded from 2018 to 2020 — for example, the income share of the platform’s top 10 streamers increased from 14.82% to 45.15% as its revenue grew by 142%. To estimate inequality elasticity to the market size, we study four quasi-experimental shocks: potential market size proxied by economic development and Fintech coverage, quarter-end revenue spikes induced by the seasonal incentive regime, user surge induced by capital raising, and the Covid-19 lockdown in Wuhan. Gini coefficient elasticity ranges fromm1.3% to 10.6% estimated from the cross-city variations (local economic development and Covid-19 Wuhan lockdown); the time-series variations (quarter-end and user surge before capital raising) imply an elasticity ranging from 3.6% to 25.5%.
  • 详情 Does Digitalization Widen Labor Income Inequality?
    Many studies suggest a positive and monotonic relationship between technological progress and wage income inequality since 1980s for industrialized economies. We examine this topic in the context of the Chinese economy where new technologies like automation, AI and digitalization have witnessed worldís most rapid growth in the last decade. Surprsingly, we Önd an inverted U-Shaped relationship - a "Digital Kuznets Curve", using a panel dataset constructed in line with the newly published "2021 Categorization of Core Industries of Digital Economy". We then set out a task-based growth model with heterogenous human capital and occupational choice, and show that this hump-shaped relationship can emerge either by introducing an erosion e§ect of digitalization on worker ability that increasingly counterveils the skill-biasing e§ect, or by directly adding a dynamic learning cost that captures the externality of digitalization. Our study contributes to the understanding of the nature of digitalization in re-shaping labor market structure.
  • 详情 The Measurement of Human Resource Equity is the Logical Foundation of Enterprise Equity Incentive
    In the era of digital economy, the development and application of digital intelligence technology are changing rapidly, and human society has entered a new era where digital intelligence technology is rapidly advancing and playing an important role. Workers who master digital intelligence technology play a decisive role in the sustained and healthy development of enterprises, and the human capital possessed by workers has become the driving force for high-quality development of enterprises. The recognition and measurement of the value of human capital possessed by workers is the foundation and prerequisite for motivating workers, and the recognition and measurement of human capital value has become a core issue that urgently needs to be studied in human resource equity accounting. The article briefly introduces the development of human resource accounting theory, expounds that establishing human capital property rights is an important condition for the sustainable development of enterprises in the digital economy era, stimulates the potential of human capital, and is conducive to accelerating economic transformation and upgrading. The dynamic equity distribution mechanism is an important way to stimulate the vitality of human capital.
  • 详情 Production, Trade, and Cross-Border Data Flows
    We build a two-country general equilibrium model to analyze the effects of cross-border data flows and pre-existing development gaps in data economies on each country's production and international trade. Raw data as byproducts of consumption can be transformed into various types of working data (information) to be used by both domestic and foreign producers. Because data constitute a new production factor for intermediate goods, a large extant divide in data utilization can reduce or even freeze trade. Cross-border data flows mitigate the situation and improve welfare when added to international trade. Data-inefficient countries where data are less important in production enjoy a ``latecomer's advantage'' with international trade and data flows, contributing more raw data from which the data-efficient countries generate knowledge for production. Furthermore, cross-border data flows can reverse the cyclicity of working data usage after productivity shocks, whereas shocks to data privacy or import costs have opposite effects on domestic and foreign data sectors. The insights inform future research and policy discussions concerning data divide, data flows, and their implications for trade liberalization, the data labor market, among others.
  • 详情 Modern Partnership System is a Booster for High-quality Development of Entrepreneurial Enterprises in the Era of Digital Intelligence
    In the era of digital economy, although the production (labor) tools of enterprises are digitalized, intelligent, and networked, and new characteristics and scenarios have emerged in enterprise operation and labor methods, the human capital possessed by workers has become the driving force for the sustainable development of entrepreneurial enterprises. Workers who master digital technology play a decisive role in the sustainable and healthy development of entrepreneurial enterprises. The article points out that in the era of digital economy, human capital is a key factor for economic growth and development. In the fields of mixed ownership and private economy, the employment system will gradually "retire", and modern partnership systems will prevail; The modern partnership system can motivate partners to collaborate and innovate, which is an upgrade of the manager system; The article briefly introduces the advantages and disadvantages of the dual ownership structure and the dynamic equity distribution mechanism of start-up companies; And the achievements made by Xiaomi Group, Huawei Company, and Midea Group in implementing a business partnership system.
  • 详情 Human Capital is the Driving Force for the Sustainable Development of Entrepreneurial Enterprises in the Digital Economy Era
    The rapid development of the digital economy is driving profound changes in production methods, lifestyles, and corporate governance. Human society has entered a new era where digital technology is rapidly advancing and playing an important role. In the era of digital economy, although the production (labor) tools of enterprises are digitized, intelligent, and networked, and new characteristics and scenarios have emerged in the operation and labor methods of enterprises, the human capital possessed by workers has become the driving force for the sustainable development of entrepreneurial enterprises. Workers who master digital technology play a decisive role in the sustainable and healthy development of entrepreneurial enterprises. The article briefly introduces the establishment and development of human capital theory, pointing out that in the digital economy era, human capital has greater potential for appreciation, and its marginal returns show a trend of increasing; Human capital is a key factor in economic growth and development. The surplus of producers in an enterprise refers to the income that producers receive in excess of their production costs. The owners of human resources should receive a portion of the investment return that should belong to human capital from the enterprise in the form of "producer equity", "labor stock", or equity incentives in proportion. Equity incentives have become an important corporate governance mechanism in the capital market. The article also elaborates on the modern partnership system, which can motivate partners to collaborate and innovate, and is an upgrade of the manager system; Briefly introduced the achievements made by Xiaomi Group and Huawei in implementing the business partner system.
  • 详情 Digital Economy, CO2 Emissions and China’s Environmental Sustainable Development— An analysis based on TVP-VAR model
    The growth of digital economy and sustainable development of environment are important issues related to high-quality economic development in the new era. This paper selects the yearly data of China from 2007 to 2021, constructs the China’s Environmental Performance Index, and establishes the TVP-VAR model to investigate the dynamic time-varying relationship between digital economy growth, CO2 emissions, and sustainable development of environment in short, medium and long-term. The results show that the relationships among them are time-varying at all terms. Specifically, in first, the growth of the digital economy exerts a negative impulse on CO2 emissions, and the short-term effect is greater than the long-term effect. Secondly, there exist positive impulses between the growth of the digital economy and sustainable development of environment. And CO2 emissions has a negative impact on sustainable development of environment. Thirdly, they have same influencing tendencies at certain time points, but different impact degrees. The impact of the digital economy development on environmental sustainable development has significantly increased since the COVID-19 outbreak. Therefore, the development of digital economy can effectively reduce CO2 emissions and promote the sustainable development of the environment.