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Does Robot Equipment Capital Affect Skill‐Wage Inequality? Evidence From China

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  • Zhihong Chen
  • Yunpeng Yang
  • Qi Shi

Abstract

The rise of robotics and automation technologies has profound implications for labor markets, particularly in the context of skill‐based wage disparities. This paper examines the influence of robot equipment capital accumulation in China on the dynamics of skill premia, which refers to the wage gap between high‐ and low‐skilled workers. Utilizing a comprehensive dataset encompassing household income and robot equipment capital, this paper conducts an empirical analysis that reveals significant regional variations in the concentration of robotic capital. These variations have a substantial impact on wage distribution, exacerbating the wage gap between skilled and unskilled labor. Key findings indicate that robot equipment capital not only acts as a catalyst for digital economic growth and industrial advancement but also enhances the productivity of skilled workers. It alters market dynamics by improving the efficiency of high‐skilled labor and reducing transactional barriers, thereby contributing to a redistribution of income that disproportionately benefits the high‐skilled labor force.

Suggested Citation

  • Zhihong Chen & Yunpeng Yang & Qi Shi, 2026. "Does Robot Equipment Capital Affect Skill‐Wage Inequality? Evidence From China," Review of Development Economics, Wiley Blackwell, vol. 30(3), pages 1940-1956, August.
    • Handle: RePEc:bla:rdevec:v:30:y:2026:i:3:p:1940-1956
    DOI: 10.1111/rode.70090
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