Robot Adoption and Employment in China

The research level of robotics in China is also at the forefront of the world, but there is no literature on the impact of robotics on the labor market in China. This paper examines the influence of robot adoption in the labor market based on regional and industry-level robot applications. This study concludes that robot adoption will considerably cut labor employment, particularly in industries where machines are more easily replaceable. The results are unaffected by substituting robot density for the dependent variable and controlling for the endogenous issue. This research contributes to the literature on robot installations and the labor market field by providing further empirical data for the structural transformation of China's labor market at a more granular level and in more industry sectors. This article suggests that policymakers in the robot sector should be concerned about the detrimental effects of robot policies on social employment and the unique characteristics of regional economies and industries.