Abstract:As an important carrier for the development of new quality productivity, it is of great theoretical value and practical significance to explore the impact of digital industry agglomeration on the share of enterprise labour income. Taking the data of A-share listed companies in Shanghai and Shenzhen from 2011 to 2023 as research samples, the article empirically examines the effect of digital industry agglomeration on the share of labour income of enterprises and its mechanism by using the panel two-way fixed-effects model. It is found that digital industrial agglomeration can significantly increase the labour income share of enterprises, and this increase is mainly achieved by promoting the advanced labour structure of enterprises and inhibiting the capital deepening of enterprises. Further analysis reveals that there are significant differences in the impact of digital industrial agglomeration on the share of labour income of enterprises, and that this enhancement effect is more obvious in capital- and technology-intensive enterprises, enterprises in regions with relatively insufficient labour supply, and enterprises in coastal regions. The extended analysis finds that digital industrial agglomeration enhances the overall pay levels of employees in firms while widening the internal pay gap. The findings expand the study of the economic effects of digital industrial agglomeration and provide theoretical references and empirical evidence for an in-depth understanding of the evolution of income distribution patterns in the era of digital economy.