Proceedings of the 2025 7th Management Science Informatization and Economic Innovation Development Conference (MSIEID 2025)

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The Mechanism of Income Impact from Technological Displacement Risks for Low-Skilled Workers in the Context of Digital Transformation

Authors
Pei Yao1, Jing Chen1, *, Wenjie Chen1
1Chengdu University of Information Technology, Chengdu, China
*Corresponding author. Email: 1002691174@qq.com
Corresponding Author
Jing Chen
Available Online 15 February 2026.
DOI
10.2991/978-94-6463-996-4_16How to use a DOI?
Keywords
digital transformation; low-skilled workers; technological substitution risk; income impact; industry heterogeneity
Abstract

Against the backdrop of digital transformation, this study focuses on low-skilled workers with ≤ 9 years of education. Using balanced panel data from the China Family Panel Studies (CFPS) spanning 2010–2022, it employs OLS regression, mediation effect testing, and industry heterogeneity analysis to explore the income impact mechanisms of technological substitution risk. Findings reveal that technological substitution risk exerts a positive overall effect on income, but negative transmission occurs through reduced job stability and weakened wage bargaining power(with partial mediation by both factors). Digital skills training can directly increase income, while government subsidies provide basic safeguards, both demonstrating potential for risk mitigation. Significant industry heterogeneity emerges: labor-intensive manufacturing faces high substitution pressure but maintains income stability, whereas life-related services exhibit low substitution risk and robust income growth. This study provides empirical support for understanding income challenges among this group and offers insights for inclusive transformation.

Copyright
© 2026 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2025 7th Management Science Informatization and Economic Innovation Development Conference (MSIEID 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
15 February 2026
ISBN
978-94-6463-996-4
ISSN
2352-5428
DOI
10.2991/978-94-6463-996-4_16How to use a DOI?
Copyright
© 2026 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Pei Yao
AU  - Jing Chen
AU  - Wenjie Chen
PY  - 2026
DA  - 2026/02/15
TI  - The Mechanism of Income Impact from Technological Displacement Risks for Low-Skilled Workers in the Context of Digital Transformation
BT  - Proceedings of the 2025 7th Management Science Informatization and Economic Innovation Development Conference (MSIEID 2025)
PB  - Atlantis Press
SP  - 184
EP  - 193
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-996-4_16
DO  - 10.2991/978-94-6463-996-4_16
ID  - Yao2026
ER  -