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Trading and Staying: How E-Commerce Shapes Rural Labor Supply and Retention in China

Year: 2026

Type: article

Abstract: E-commerce is reshaping rural economies in developing countries, yet micro-level evidence on its early effects on rural labor supply and retention remains limited. This study examines these effects in China, distinguishing between platform e-commerce (e.g., Taobao) and social e-commerce (e.g., WeChat) to uncover heterogeneous effects across different models and demographic subgroups. We employ a propensity score matching difference-in-differences (PSM-DID) method using two-period panel data from 3234 rural residents, covering the critical period of rural e-commerce emergence and expansion in China from 2013 and 2017. Results show that different e-commerce models shape rural labor allocation along both temporal and spatial dimensions. Platform e-commerce significantly promotes localized labor participation, while social e-commerce offers flexible entry points for vulnerable populations such as child-bearing, left-behind women. These findings offer lessons for inclusive digital development in developing countries facing rural labor outflow and digital divides.

Source: Sustainability

DOI: 10.3390/su18083970

Authors: Dongshi Chen, Xiaokang Li

Institution: South Central Minzu University

Language: English

Topic: E-commerce and Technology Innovations

Subfield: Business and International Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Decent work and economic growth, No poverty, Reduced inequalities

Open Access status: gold

Estimated APC paid: $2,896