Digital economy and labour income share in emerging economies: evidence from China

With the rapid development of China's digital economy, this paper considers China as an example to explore the digital economy's impact on the labour income share among developing countries. The research results reveal the following. First, developing the digital economy has significantly increased the share of labour income, especially that of low-skilled workers. Second, such development has promoted the labour force's transfer to industries with a higher proportion of labour income and enhanced the efficiency of resources allocated between cities and among industries within cities. Third, the digital economy's growth is more conducive to increasing the proportion of labour income in regions with lower economic development, indicating a boundary effect and highlighting its role in 'bridging the gap'. Fourth, developing the digital economy is more conducive to increasing the share of labour income in labour-intensive industries. This research provides valuable policy insights for developing countries that aim to accelerate digital economic growth while increasing the share of labour income.