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Higher education expansion and the adoption of robots in China

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  • Qiao, Gang
  • Kong, Dongmin
  • Liu, Lihua

Abstract

This paper examines the effect of China's 1999 higher education expansion on firm adoption of robots, employing a quasi-natural experiment. Using the difference-in-differences estimation strategy, we find that the surge in college-educated labor from 2003 led firms in human capital-intensive industries to adopt fewer robots, reducing machine-to-human replacement. The effect is stronger in non-SOEs, financially constrained firms, large and high-tech firms, labor-intensive industries, and coastal areas. Mechanism tests suggest cheaper labor and human capital upgrading drive this reduction. These findings emphasize human capital's crucial role in mitigating robot-driven labor displacement and its broader impact on the job market.

Suggested Citation

  • Qiao, Gang & Kong, Dongmin & Liu, Lihua, 2025. "Higher education expansion and the adoption of robots in China," Emerging Markets Review, Elsevier, vol. 69(C).
    • Handle: RePEc:eee:ememar:v:69:y:2025:i:c:s1566014125001037
    DOI: 10.1016/j.ememar.2025.101354
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    JEL classification:

    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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