The Impact of Digital Technology Application on Individual Participation in the Labor Force: Evidence From China

ABSTRACT We analyze the impact and mechanism of digital technology application on individual participation in the labor force, and empirically test this using micro‐level data from the China Family Panel Survey (CFPS) spanning 2014 to 2020, merged with macro‐level data. We find, first, that digital technology application increases the probability of individual participation in the labor force. Second, the impact exhibits urban‐rural, gender, and age heterogeneity. Digital technology adoption significantly affects urban residents, males, and younger individuals, while its impact on rural residents, females, and the middle‐aged and elderly group is not significant. Third, digital technology application encourages individual participation in the labor force by improving their health and digital human capital level. We provide a perspective for understanding the impact of digital technology application on individual participation in the labor force, as well as for formulating policies to promote digital technology application and labor market policies.