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Do industrial robots affect the labour market? Evidence from China

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  • Lihua Zhang
  • Tian Gan
  • Jiachen Fan

Abstract

The industrial robot is an essential part of modern manufacturing. Using micro‐level data, this study investigates the effects of industrial robots on the labour market in China. The results show that the adoption of industrial robots increases firm‐level employment by 31.65%. Using the Bartik method, we construct robot penetration as an instrumental variable of robot adoption to tackle endogenous problems. Our results stand up to a series of robustness checks. Moreover, the effects of robots are mainly owing to the expansion of the output scale, increased productivity, and upgraded products. We also find the skill‐biased impact of robots and the spillover effect of industrial robots through production networks.

Suggested Citation

  • Lihua Zhang & Tian Gan & Jiachen Fan, 2023. "Do industrial robots affect the labour market? Evidence from China," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 31(3), pages 787-817, July.
    • Handle: RePEc:wly:ectrin:v:31:y:2023:i:3:p:787-817
    DOI: 10.1111/ecot.12356
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    7. Bo Chen & Dong Tan, 2023. "Industrial Robots and the Employment Quality of Migrant Workers in the Manufacturing Industry," Sustainability, MDPI, vol. 15(10), pages 1-21, May.
    8. Gan, Tian & Jiang, Yan & Wu, Xi & Zhang, Mingxin, 2024. "Digital government and regional innovation," Economics Letters, Elsevier, vol. 238(C).

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