The wave of government digitalization: How government digital procurement affects residents’ employment

Abstract

With the expansion of the scale of government digital procurement, its impact on economic life, especially on the labor market, has become increasingly evident. This paper employs Double Machine Learning (DML) estimation techniques to examine the impact of local government digital procurement on resident employment. The research findings indicate that local government digital procurement significantly reduces the unemployment rate among residents, and this conclusion holds after rigorous robustness checks. Further analysis reveals that these positive effects on employment are achieved through increased capital investment, enhanced job value, and improved productivity. Additionally, the impact of government digital procurement on employment is more pronounced in non-digital industries, and the beneficial effects on employment are more significant in regions with a larger proportion of the tertiary industry, higher levels of foreign investment, and more comprehensive social security systems.