ORIGINAL RESEARCH
The Impact of Environmental Regulation
on Employment Structure: Evidence from China
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1
School of Business, Xinyang Normal University, No. 237 Nanhu Road, Xinyang 464000, China
2
School of Marxism, Anhui University, No. 111 Jiulong Road, Hefei 230601, China
3
School of Economics, Wuhan Business University, No. 816 Dongfeng Road, Wuhan 430073, China
Submission date: 2025-06-05
Final revision date: 2025-06-30
Acceptance date: 2025-07-07
Online publication date: 2025-08-13
Publication date: 2026-01-02
Corresponding author
Daojun Bi
School of Business, Xinyang Normal University, No. 237 Nanhu Road, Xinyang 464000, China
Pol. J. Environ. Stud. PEaI. 2025;1(1):33-45
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ABSTRACT
Based on China’s provincial-level panel data from 2007 to 2023, this study examines the
optimizing effect of environmental regulation on employment structure using a GMM model, and
clarifies its mechanism of action using a mediated effect model. The conclusion shows that the impact
of environmental regulation on employment structure presents multidimensional characteristics.
On the one hand, environmental regulation directly promotes the adjustment of employment
structure; on the other hand, it guides the labor force to gather in environmentally friendly service
industry by forcing the green transformation of industrial structure; at the same time, it promotes
the transfer of labor force to high technology field by stimulating technological innovation of enterprises,
and promotes the evolution of employment structure to knowledge-intensive direction by improving
human capital level. Heterogeneity analysis shows that the marginal effect of environmental regulations
on the industrial structure of employment is limited in China’s eastern coastal economic zone and
regions with high urbanization rates. Moreover, the contribution of enhanced environmental regulatory
intensity to the efficiency of cross-sectoral allocation of labor factors is constrained by the regional
urbanization rate.
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