Professor Minggui Yu, the Co-Director of the Base, has published a collaborative paper titled "Digital Transformation and Labor Demand of Commercial Banks: Creation or Destruction? " in Management World

Abstract:

This paper studies the impact of bank digital transformation on bank labor demand. In terms of the total amount, digital transformation has a destructive effect on the labor demand of banks. When the digital transformation index increases by one unit standard deviation, labor employment decreases by 0.792%. Structurally, digital transformation has reduced the need for bank employees with a bachelor's degree or below, but expanded the need for those with a master's degree or above. This indicates that digital transformation promotes the upgrading of human capital in banks. Moreover, there is weak evidence that digital transformation reduces the need for operational staff and increases the need for technical staff. The mechanism test found that banks reduced the labor demand by reducing the number of branches and physical bank outlets in the process of digital transformation. Finally, the employment destruction effect of bank digital transformation is mainly caused by the digital transformation of organizational adjustment dimension. This paper not only expands the literature on the economic consequences of the application of new technology by banks, but also enriches the research on the impact of technological progress on the labor market.

Key Words: commercial bank labor employment digital transformation

Link: http://www.mwm.net.cn/web/xq?leafid=226&docid=4555

Teacher Profile

Minggui Yu, Dean, professor and doctoral supervisor of School of Finance, Zhongnan University of Economics and Law, Co-director of Innovation and Talent Base for Digital Technology and Finance. He has been included in the new century excellent talents to support the Ministry of Education plans, presided over a number of national natural science fund project. He has published more than 70 papers in Economic Research Journal, the Journal of Management World, China Economics Quarterly, China Industrial Economics, Financial Research Journal, Economic Modelling and other journals, and many papers have been selected to the top of the list of highly cited papers. He is also  the editor of journals such as Accounting and Finance.