Internet, transportation infrastructure and the spatial structure of urban employment in China

This study revealed the non-linear impact of the internet on the spatial structure of intracity employment and how transportation infrastructure moderates this non-linear impact. Using data from 22.47 million enterprises from the China Economic Census of 2004, 2008 and 2013, we found that (1) on average, the internet promotes urban employment agglomeration, but this agglomeration effect diminishes marginally as internet penetration increases; (2) the internet promotes the secondary sector to agglomerate first and then disperse, while it only has an agglomeration effect on the tertiary sector; and (3) improvements in the transportation infrastructure diminish the internet’s agglomeration effect.