Are artificial intelligence dividends evenly distributed between profits and wages? Evidence from the private enterprise survey data in China

Linhui Wang, Zhanglu Cao and Zhiqing Dong

Structural Change and Economic Dynamics, 2023, vol. 66, issue C, 342-356

Abstract: Using artificial intelligence (AI) patents and private enterprise survey data in China, we investigate the impact of AI on the distribution of income between profits and wages. Our results reveal that the impact of AI on the distribution of income between profits and wages is U-shaped, implying that with AI shocks the distribution of income shifts from labor to capital. We find that AI impacts the distribution of income between profits and wages by reducing labor demand and increasing capital productivity. The impact of AI on the distribution of income between profits and wages is heterogeneous across enterprise organizational forms, employee training and dividend incentives, attributes of enterprise owners, and industry factor endowments.

Keywords: Artificial intelligence; Income distribution; Wages; Profits; Private enterprises (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:streco:v:66:y:2023:i:c:p:342-356

DOI: 10.1016/j.strueco.2023.05.010

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