Does the digital divide reduce the probability of formal employment for workers？ --Empirical evidence based on CHFS microdata

The digital economy, as an emergent economic construct, has progressively become a major driver for employment promotion. Nevertheless, as the digital economy evolves, the "digital divide" has subtly begun to sway individuals' employment decisions. Utilizing China Household Financial Survey (CHFS) data and the Probit model, this paper embarks on an empirical exploration of the digital divide's impact on workers' employment decision-making behavior. The mechanism of the digital divide is scrutinized by incorporating aspects of information accessibility and risk tolerance. The study unveils that: (1) the digital divide markedly diminishes the likelihood of workers securing formal employment; (2) the digital divide can deter workers from venturing into formal employment channels by curbing their access to information and risk tolerance; (3) this deterrent effect is more pronounced among workers in central and western regions, non-metropolitan cities, rural areas, and those burdened with high household indebtedness; (4) the digital divide also significantly undermines workers' subjective well-being. The findings bear significant theoretical and practical implications for labor market improvement and the enhancement of workers' employment quality.