Does the digital economy enhance tourism employment? An empirical study of tourism industry in China

Abstract

Many researchers have recognized that the digital economy has increased employment levels in the tourism industry. However, employer preferences and choices in hiring employees within this sector have been less thoroughly addressed in previous studies. The purpose of this study is to examine the impact of the digital economy on labor hiring in the tourism industry. We employ the capital-skill complementarity hypothesis and the human capital externality theory to develop a model that reveals how the development of the digital economy affects employers’ hiring preferences based on employees’ education levels. Specifically, we select a sample of 993 Chinese listed tourism companies over the period 2010–2022 to analyze how digital economic development impacts the human capital in tourism enterprises. Additionally, we analyzed the moderating effects of the aging population and the minimum wage. Our research findings indicate that the digital economy encourages tourism firms to hire highly educated employees while discouraging the hiring of employees with lower educational qualifications. Further analysis of the impact mechanism reveals that an increase in the minimum wage significantly promotes the positive relationship between digital economic development and the hiring of highly educated employees in tourism firms. Additionally, it significantly strengthens the negative relationship between digital economic development and the hiring of less educated employees. Furthermore, the intensification of population aging significantly reduces the positive relationship between digital economy development and the hiring of highly educated employees, while also significantly alleviating the negative relationship between digital economic development and the hiring of less educated employees by tourism firms. The results of our study provide a basis for decision-making and insights for regulators of the tourism market and managers of tourism enterprises.

Keywords

• Digital economy
• tourism firms
• employment
• human capital
• population aging
• minimum wage