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The application of industrial robots and changes in capital-labour income disparity in China

Author

Listed:
  • Zhang, Xinchun
  • Yu, Qi
  • Liu, Jianxu
  • He, Ying
  • Xu, Aijia

Abstract

The technological revolution, particularly the rise of industrial robots and artificial intelligence, has significantly impacted global economic growth and income disparity. This study examines the impact of industrial robot applications on the capital-labour income disparity in China, a country with the highest number of industrial robot applications and a commitment to reducing income inequality. The findings indicate that industrial robots intensify the income disparity between capital and labour, particularly in economically underdeveloped regions characterized by less sophisticated industrial structures, low levels of human capital, underdeveloped physical capital, and inadequate market economies. The promotion of industrial structure sophistication, enhancement of human capital levels, deepening of physical capital, and advancement of market development can mitigate the adverse impact of industrial robot applications on the income disparity between capital and labour. The study underscores the necessity of institutional reforms and targeted policies across these dimensions to address the negative impacts of new technologies.

Suggested Citation

  • Zhang, Xinchun & Yu, Qi & Liu, Jianxu & He, Ying & Xu, Aijia, 2024. "The application of industrial robots and changes in capital-labour income disparity in China," Economic Analysis and Policy, Elsevier, vol. 84(C), pages 42-56.
    • Handle: RePEc:eee:ecanpo:v:84:y:2024:i:c:p:42-56
    DOI: 10.1016/j.eap.2024.08.020
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    3. Li, Xiaofan & Wang, Qiaochu & Kong, Dongmin & Tao, Yunqing, 2025. "Intelligent manufacturing and corporate human capital upgrade in China," Journal of Asian Economics, Elsevier, vol. 97(C).

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