Abstract
Digital connectivity is recognized as an important factor for the development of the labour market, but the mechanisms by which it influences employment remain insufficiently explained in the literature. This study investigates the role of innovation as a mediation mechanism in the relationship between internet access and employment in the Member States of the European Union. The analysis is based on data from 2013–2023 and uses a structural equation model estimated by the maximum likelihood method. The results highlight a direct and positive effect of internet access on employment, as well as a significant effect on innovation performance, which in turn positively influences employment. In contrast, while digital infrastructure contributes to the development of the ICT sector, it does not mediate the relationship between digitalization and employment. The conclusions suggest that the benefits of digital connectivity on the labour market are generated mainly by stimulating innovation, rather than by expanding the activity of the ICT sector, providing relevant arguments for underpinning European policies on digital transformation, innovation and employment.
Cuvinte cheie
internet access
innovation
employment
mediation analysis
modeling structural equations
European Union.
Istoric articol
Publicat
31.08.2026
Informații autori
Citare recomandată
Elena Iulia Nițescu (2026). Does Innovation Mediate the Effect of Digital Connectivity on Employment? Evidence From European Union Countries. Constantin Brâncuși University of Târgu Jiu Economics Series, 2(1), 685–692. https://doi.org/10.65631/jes.4.2026.64
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