Where to Go: How Does Digital Finance Influence Labor Mobility Preferences? — A Dual Perspective on Regional and Industry Mobility

ABSTRACT Using data from the 2011–2018 China Migrants Dynamic Survey, which includes over 1.1 million observations, along with the Peking University Digital Financial Inclusion Index, this paper investigates the impact of digital finance on cross‐regional labor mobility and Interindustry movement. The results indicate that regional digital finance disrupts the traditional “proximity mobility preference” of rural labor, thereby broadening the geographic scope of migration. Specifically, it reduces mobility across counties while increasing mobility across cities and provinces. The study finds that rural low‐skilled and middle‐skilled workers are more likely to transition into the tertiary sector after migrating across provinces. This movement is driven by income incentives and reduced costs. For low‐skilled rural labor, regional digital finance encourages provincial mobility and entry into the tertiary sector by raising wage levels and reducing information costs. For middle‐skilled rural labor, the same effect occurs through higher relative income and lower job‐search costs. This study offers new insights into optimizing labor mobility and industrial patterns in the context of digital finance development.