The Impact of Government Service Informatization on Firms' Labor Income Share

JIANG Pengcheng; QIN Shuai; CHEN Jinzhi

Volume 41 Issue 1

Jan. 2026

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Article Navigation > Journal of Guangdong University of Finance & Economics > 2026 > 41(1): 130-144

JIANG Pengcheng, QIN Shuai, CHEN Jinzhi. The Impact of Government Service Informatization on Firms' Labor Income Share[J]. Journal of Guangdong University of Finance & Economics, 2026, 41(1): 130-144.

Citation:

JIANG Pengcheng, QIN Shuai, CHEN Jinzhi. The Impact of Government Service Informatization on Firms' Labor Income Share[J]. Journal of Guangdong University of Finance & Economics, 2026, 41(1): 130-144.

Citation:

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The Impact of Government Service Informatization on Firms' Labor Income Share

1.
School of Finance, Nanjing Audit University, Nanjing 211815
2.
School of Business, Soochow University, Suzhou 215021, China

Received Date: 2025-10-10
Available Online: 2026-03-23
Publish Date: 2026-01-28

Abstract

Abstract

The deep integration of information technology and government services has reshaped governance models and become a key driver of economic transformation and development. Using the policy of "National Pilot Cities for Information Benefiting the People" as a quasi-natural experiment, this study employs a difference-in-differences (DID) framework to examine the effect of government service informatization on firms' labor income share. The results show that government service informatization significantly increases firms' labor income share. This effect is stronger for firms with a lower share of fixed assets, higher leverage, those in the secondary sector, firms operating in regions with greater market segmentation, firms in administratively monopolized industries, and firms located in regions with more advanced digital infrastructure. Mechanism tests indicate that government service informatization raises the labor income share by easing financing constraints and increasing labor hiring. Further analysis suggests that government service informatization reduces intra-firm income inequality and curbs excessive pay disparities. These findings provide theoretical support and policy implications for promoting governance transformation, improving the income distribution pattern, and advancing common prosperity in a solid and sustained manner.
- government service informatization,
- labor income share,
- intra-firm income inequality,
- common prosperity

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References(39)

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