Digital Economy and Employment Quality in China: The Mediating and Moderating Role of Educational Resource Allocation

Abstract

Using provincial panel data from 30 Chinese provinces over the period 2011–2022, this paper employs fixed-effects models to examine the impact of digital economy development on employment quality. The results reveal that digital economy development significantly improves employment quality, with this effect remaining robust after addressing potential endogeneity and using different model specifications. Additionally, the study shows that investment in educational resources partially mediates the relationship between the digital economy and employment quality. Notably, the structure of educational resources, as measured by the average size of higher education institutions, exhibits a significant negative moderating effect, challenging conventional expectations. The findings further highlight that the positive effects of the digital economy on employment quality are stronger in the eastern and central regions than in the western and northeastern regions. However, it should be noted that the positive impact is mainly concentrated in the “work environment” subdimension, with no significant effects observed on work income and labor protection. Based on these findings, the study suggests that improving employment quality in the digital economy requires not only continued digital development but also increased investment in education and better alignment of higher education resource allocation with regional development needs.