The impact of digital transformation on human capital investment

This study examines the impact of digital transformation on human capital investment. The results show that digital transformation optimizes human capital structure by increasing the demand for highly skilled labor, a shift by enhanced complementarity among technology, organizational processes, and employee skills. The effect is more pronounced in private enterprises and in regions with abundant labor supply. Furthermore, digital transformation increases the share of skilled workers while raises total labor costs, thereby increasing labor cost stickiness. These findings highlight the social implications of digital transformation and provide practical guidance for enterprises to integrate human capital considerations into their digital strategies.