IDEAS home Printed from https://ideas.repec.org/a/eee/joecag/v29y2024ics2212828x2400029x.html

Impact of population ageing on the application of industrial robots: Evidence from China

Author

Listed:
  • Zhao, Yantong
  • Said, Rusmawati
  • Ismail, Normaz Wana
  • Haris, Asmaddy
  • Hamzah, Hanny Zurina

Abstract

China is experiencing a rise in its ageing population alongside rapid advancements in industrial robotics. Using panel data from China’s industries (2006 to 2021), this study empirically examines the impact of population ageing on the application of industrial robots. The results show that population ageing significantly promotes industrial robot application. The impact of population ageing on the application of industrial robots varies by industry. The promotion effect is greater in low and medium-technology industries than that of high-tech industries. This effect became more evident after 2012. Industries with high state ownership exhibit stronger influence coefficients than those with lower state ownership. Mechanism analysis indicates that population ageing promotes industrial robot adoption through the labour cost substitution effect. These findings offer insights for government policies to promote sustainable ageing and upgrading the manufacturing sector through artificial intelligence represented by the application of robotics.

Suggested Citation

  • Zhao, Yantong & Said, Rusmawati & Ismail, Normaz Wana & Haris, Asmaddy & Hamzah, Hanny Zurina, 2024. "Impact of population ageing on the application of industrial robots: Evidence from China," The Journal of the Economics of Ageing, Elsevier, vol. 29(C).
  • Handle: RePEc:eee:joecag:v:29:y:2024:i:c:s2212828x2400029x
    DOI: 10.1016/j.jeoa.2024.100529
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S2212828X2400029X
    Download Restriction: no

    File URL: https://libkey.io/10.1016/j.jeoa.2024.100529?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Lordan, Grace & Neumark, David, 2018. "People versus machines: The impact of minimum wages on automatable jobs," Labour Economics, Elsevier, vol. 52(C), pages 40-53.
    2. Creina Day & Steve Dowrick, 2004. "Ageing Economics: Human Capital, Productivity and Fertility," Agenda - A Journal of Policy Analysis and Reform, Australian National University, College of Business and Economics, School of Economics, vol. 11(1), pages 3-20.
    3. Fan, Haichao & Hu, Yichuan & Tang, Lixin, 2021. "Labor costs and the adoption of robots in China," Journal of Economic Behavior & Organization, Elsevier, vol. 186(C), pages 608-631.
    4. Yang, Siying & Liu, Fengshuo & Lu, Jingjing & He, Xiaogang, 2022. "Does occupational injury promote industrial robot applications?," Technology in Society, Elsevier, vol. 70(C).
    5. Yantong Zhao & Rusmawati Said, 2023. "The Effect of the Digital Economy on the Employment Structure in China," Economies, MDPI, vol. 11(9), pages 1-14, September.
    6. Murphy, Kevin M & Welch, Finis, 1990. "Empirical Age-Earnings Profiles," Journal of Labor Economics, University of Chicago Press, vol. 8(2), pages 202-229, April.
    7. J. R. Hicks, 1963. "The Theory of Wages," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-00189-7, September.
    8. Green, Francis & Henseke, Golo, 2021. "Europe's evolving graduate labour markets: supply, demand, underemployment and pay," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 55, pages 1-002.
    9. repec:iab:iabjlr:v:55:i::p:art.2 is not listed on IDEAS
    10. Daron Acemoglu, 2010. "When Does Labor Scarcity Encourage Innovation?," Journal of Political Economy, University of Chicago Press, vol. 118(6), pages 1037-1078.
    11. Hong Cheng & Ruixue Jia & Dandan Li & Hongbin Li, 2019. "The Rise of Robots in China," Journal of Economic Perspectives, American Economic Association, vol. 33(2), pages 71-88, Spring.
    12. Abeliansky, Ana Lucia & Prettner, Klaus, 2017. "Automation and demographic change," VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168215, Verein für Socialpolitik / German Economic Association.
    13. Francis Green & Golo Henseke, 2021. "Europe’s evolving graduate labour markets: supply, demand, underemployment and pay," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 55(1), pages 1-13, December.
    14. Heer, Burkhard & Irmen, Andreas, 2014. "Population, pensions, and endogenous economic growth," Journal of Economic Dynamics and Control, Elsevier, vol. 46(C), pages 50-72.
    15. repec:iab:iabjlr:v:55:p:art.02 is not listed on IDEAS
    16. Paul Beaudry & Fabrice Collard, 2002. "Why has the Employment-Productivity Tradeoff among Industrialized Countries been so strong?," NBER Working Papers 8754, National Bureau of Economic Research, Inc.
    17. Michael Kremer, 1993. "Population Growth and Technological Change: One Million B.C. to 1990," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 108(3), pages 681-716.
    18. Benjamin Jones & E.J. Reedy & Bruce A. Weinberg, 2014. "Age and Scientific Genius," NBER Working Papers 19866, National Bureau of Economic Research, Inc.
    19. Lee, Hyun-Hoon & Shin, Kwanho, 2019. "Nonlinear effects of population aging on economic growth," Japan and the World Economy, Elsevier, vol. 51(C), pages 1-1.
    20. Daron Acemoglu & Pascual Restrepo, 2017. "Secular Stagnation? The Effect of Aging on Economic Growth in the Age of Automation," American Economic Review, American Economic Association, vol. 107(5), pages 174-179, May.
    21. Fougere, Maxime & Mercenier, Jean & Merette, Marcel, 2007. "A sectoral and occupational analysis of population ageing in Canada using a dynamic CGE overlapping generations model," Economic Modelling, Elsevier, vol. 24(4), pages 690-711, July.
    22. Zera Zuryana Idris & Normaz Wana Ismail & Saifuzzaman Ibrahim & Hanny Zurina Hamzah, 2021. "The impact of high-technology trade on employment," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 30(4), pages 512-529, May.
    23. Park, Cyn-Young & Shin, Kwanho & Kikkawa, Aiko, 2021. "Aging, automation, and productivity in Korea1," Journal of the Japanese and International Economies, Elsevier, vol. 59(C).
    24. Habakkuk, H. J., 1962. "Fluctuations in House-Building in Britain and the United States in the Nineteenth Century," The Journal of Economic History, Cambridge University Press, vol. 22(2), pages 198-230, June.
    25. Boucekkine, Raouf & de la Croix, David & Licandro, Omar, 2002. "Vintage Human Capital, Demographic Trends, and Endogenous Growth," Journal of Economic Theory, Elsevier, vol. 104(2), pages 340-375, June.
    26. Alberto Alesina & Joseph Zeira, 2006. "Technology and Labor Regulations," NBER Working Papers 12581, National Bureau of Economic Research, Inc.
    27. Kalemli-Ozcan, Sebnem & Ryder, Harl E. & Weil, David N., 2000. "Mortality decline, human capital investment, and economic growth," Journal of Development Economics, Elsevier, vol. 62(1), pages 1-23, June.
    28. Aymerich-Franch, Laura & Ferrer, Iliana, 2022. "Liaison, safeguard, and well-being: Analyzing the role of social robots during the COVID-19 pandemic," Technology in Society, Elsevier, vol. 70(C).
    29. Daron Acemoglu & Pascual Restrepo, 2022. "Demographics and Automation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 89(1), pages 1-44.
    30. Belgi Turan, 2020. "Life expectancy and economic development: Evidence from microdata," Review of Development Economics, Wiley Blackwell, vol. 24(3), pages 949-972, August.
    31. Jia, Zhijie & Wen, Shiyan & Lin, Boqiang, 2024. "Would behaviors of state-owned enterprises impact the performance of downstream industries in China?," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 1007-1035.
    32. Daron Acemoglu & Pascual Restrepo, 2020. "Robots and Jobs: Evidence from US Labor Markets," Journal of Political Economy, University of Chicago Press, vol. 128(6), pages 2188-2244.
    33. Barro, Robert J. & Lee, Jong Wha, 2013. "A new data set of educational attainment in the world, 1950–2010," Journal of Development Economics, Elsevier, vol. 104(C), pages 184-198.
    34. Alguacil, Maite & Lo Turco, Alessia & Martínez-Zarzoso, Inmaculada, 2022. "Robot adoption and export performance: Firm-level evidence from Spain," Economic Modelling, Elsevier, vol. 114(C).
    35. Andreas Irmen, 2017. "Capital‐ And Labor‐Saving Technical Change In An Aging Economy," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 58(1), pages 261-285, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wang, Chuanpeng & Li, Chunlei & Wang, Yuanlun, 2025. "Population aging, unemployment rate and regional innovation," Finance Research Letters, Elsevier, vol. 78(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Li, Daiyue & Jin, Yanhong & Cheng, Mingwang, 2024. "Unleashing the power of industrial robotics on firm productivity: Evidence from China," Journal of Economic Behavior & Organization, Elsevier, vol. 224(C), pages 500-520.
    2. Tang, Yuwei & Sun, Yanlin & He, Zhenyu, 2025. "Air pollution and firms' robot adoption: Evidence from China," Economic Modelling, Elsevier, vol. 143(C).
    3. Daniele Angelini, 2023. "Aging Population and Technology Adoption," Working Paper Series of the Department of Economics, University of Konstanz 2023-01, Department of Economics, University of Konstanz.
    4. Yang, Siying & Liu, Fengshuo & Lu, Jingjing & He, Xiaogang, 2022. "Does occupational injury promote industrial robot applications?," Technology in Society, Elsevier, vol. 70(C).
    5. Jurkat, Anne & Klump, Rainer & Schneider, Florian, 2025. "Robots and wages: A meta-analysis," Structural Change and Economic Dynamics, Elsevier, vol. 75(C), pages 541-567.
    6. Dai, Hangrui & Yang, Ronghai & Cao, Rongguang & Yin, Lei, 2024. "Does the application of industrial robots promote export green transformation? Evidence from Chinese manufacturing enterprises," International Review of Economics & Finance, Elsevier, vol. 96(PA).
    7. Ana L. ABELIANSKY & Eda ALGUR & David E. BLOOM & Klaus PRETTNER, 2020. "The future of work: Meeting the global challenges of demographic change and automation," International Labour Review, International Labour Organization, vol. 159(3), pages 285-306, September.
    8. Hagiwara, Takefumi, 2025. "Aging and its macroeconomic consequences: An inverted U-shaped endogenous economic growth," MPRA Paper 124598, University Library of Munich, Germany.
    9. Xu, Shaofeng & Liu, Tao & Liu, Fengliang, 2024. "On the role of automation in an epidemic," Journal of Economic Dynamics and Control, Elsevier, vol. 160(C).
    10. Yuan, Bo & Sun, Pengbo, 2024. "Does the high-tech foreign investment spark robot adoption in the developing world? Evidence from China," Structural Change and Economic Dynamics, Elsevier, vol. 71(C), pages 302-314.
    11. Wang, Weilong & Wang, Jianlong & Ye, Huiying & Wu, Haitao, 2024. "Polluted air, smarter factories? China's robot imports shed light on a potential link," Energy Economics, Elsevier, vol. 134(C).
    12. Xiaoyu Bian & Guangsu Zhou, 2024. "The effects of robots on internal migration: Evidence from China," Journal of Regional Science, Wiley Blackwell, vol. 64(3), pages 840-865, June.
    13. Wang, Ting & Zhang, Yi & Liu, Chun, 2024. "Robot adoption and employment adjustment: Firm-level evidence from China," China Economic Review, Elsevier, vol. 84(C).
    14. Nie, Fei & Etienne, Xiaoli & Li, Jian & Hu, Hualu, 2025. "Trade liberalization and manufacturing robot adoption: Evidence from Chinese free trade agreements," China Economic Review, Elsevier, vol. 94(PA).
    15. Qiao, Gang & Kong, Dongmin & Liu, Lihua, 2025. "Higher education expansion and the adoption of robots in China," Emerging Markets Review, Elsevier, vol. 69(C).
    16. Xu, Rui & Zhang, Hao & Han, Minghui & Yang, Leo Yang, 2025. "Robot adoption and corporate pollution emissions: Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 90(C).
    17. Hémous, David & Dechezleprêtre, Antoine & Olsen, Morten & Zanella, carlo, 2019. "Automating Labor: Evidence from Firm-level Patent Data," CEPR Discussion Papers 14249, Centre for Economic Policy Research.
    18. Xiang, Junyi & Kong, Dongmin & Zhang, Fan, 2025. "Labor cost, robots, and product quality," China Economic Review, Elsevier, vol. 90(C).
    19. Li, Weibing & Li, Mingyang, 2026. "Automation from fires: Evidence from China," Energy Economics, Elsevier, vol. 153(C).
    20. Yang, Jie & Wang, Fayan & Zhou, Jingchi & Zhao, Libin, 2025. "Double-edged sword effect of customer concentration on the adoption of industrial robots," International Review of Economics & Finance, Elsevier, vol. 102(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:joecag:v:29:y:2024:i:c:s2212828x2400029x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/the-journal-of-the-economics-of-ageing .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.