Digital Economy and Entrepreneurship: Heterogeneity of Labor Force Skills

This study investigates the effect of digital economy on entrepreneurship. Our empirical results show that digital economic development significantly increases the probability of labor force participation in entrepreneurial activities. Digital economy also has a polarizing effect on entrepreneurial behavior. It significantly promotes the entrepreneurial probability of the low-skilled labor force but has a positive and an insignificant effect on the high-skilled labor force. Our findings contribute to enacting improved policies on entrepreneurial behavior and employment.