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Impact of Industrial Robots on Employment in China’s Manufacturing Industry: Moderating Role of Social Security

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  • Ruwen Li
  • Tajul Ariffin Masron
  • Hengyi Hu

Abstract

Using provincial panel data from China, this study applies the Generalized Method of Moments (GMM) method and the coupling coordination degree (CCD) model to analyze how industrial robots affect manufacturing employment across different skill groups and how social security expenditure moderates this relationship. The results show clear structural heterogeneity: robots increase employment for low-skilled workers but substitute for medium-to-high-skilled workers. Social security expenditure also plays a moderating role, but its effects differ by skill group. Further analysis shows that the interaction among industrial robots, social security expenditure, and employment is still weak, with overall coupling coordination at a low level. Stronger institutional support is needed to improve coordination and make these systems work together more effectively.

Suggested Citation

  • Ruwen Li & Tajul Ariffin Masron & Hengyi Hu, 2026. "Impact of Industrial Robots on Employment in China’s Manufacturing Industry: Moderating Role of Social Security," Chinese Economy, Taylor & Francis Journals, vol. 59(3), pages 262-287, May.
    • Handle: RePEc:mes:chinec:v:59:y:2026:i:3:p:262-287
    DOI: 10.1080/10971475.2025.2588873
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