Impacts of Algorithm-Powered Short Videos on Employment and Mental Health.

Liao, Yuxi and Huang, Kaixing (2025): Impacts of Algorithm-Powered Short Videos on Employment and Mental Health.

Abstract

Algorithm-powered short videos, which leverage advanced algorithms and recommendation systems to analyze user preferences, have emerged as a dominant force in digital media. By comparing individuals before and after their exposure to short videos, this study provides causal evidence that short videos have increased employment, mainly part-time jobs, by 7.5% in China. A larger increase in employment is observed among marginalized groups with lower education levels and lower incomes, those from rural areas, and mothers with young children. We also observe that being exposed to short videos significantly reduces individual mental health, plausibly as a side effect of allocating more time to work and less time to sleep and exercise. We do not find a significant difference in the impact on mental health across population groups, suggesting an unbalanced welfare impact favoring marginalized groups. Finally, we find that reducing the frequency of short video consumption could substantially reduce the damage to mental health while maintaining most of the positive effects on employment.

• Item Type: MPRA Paper
• Language: English
• Keywords: Short videos; Socioeconomic outcomes; Mental Health; Heterogeneity
• Subjects: I - Health, Education, and Welfare > I1 - Health > I12 - Health Behavior; L - Industrial Organization > L8 - Industry Studies: Services > L82 - Entertainment ; Media; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O12 - Microeconomic Analyses of Economic Development

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