A spatial perspective on the impact of digital financial inclusion on the employment structure of the labour force: Evidence from Chinese cities

In the context of big data, the rise of digital inclusive finance is driving the digital transformation of various industries, which in turn, has a profound impact on labour employment. Based on the panel data of 258 prefecture-level cities in China from 2011 to 2021, this article evaluates the impact of digital financial inclusion on the employment structure of the labour force and investigates its spatial spillover effects by constructing a spatial Durbin model and a mediation model. The study finds that: (1) Digital financial inclusion increases the employment demand for high-skilled and low-skilled labour and decreases the employment demand for middle-skilled labour, that is, the employment structure of the labour force shows a polarisation trend. (2) There is a positive spatial spillover effect of the impact of the development of digital financial inclusion on the demand for high- and low-skilled labour. (3) Financial digitisation plays an intermediary role in the process of digital financial inclusion affecting the employment structure of the labour force. Taking advantage of the dividends brought about by the development of digital inclusive finance and formulating policies according to the actual situation of each region indicate an undeniable choice for achieving full employment.