The Impact of Artificial Intelligence on China’s Labor Market

Mayuree Santhadkitjakarn () and Somtip Watanapongvanich ()
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Mayuree Santhadkitjakarn: Chulalongkorn University, Bangkok, Thailand
Somtip Watanapongvanich: Chulalongkorn University, Bangkok, Thailand

RAIS Conference Proceedings 2022-2025 from Research Association for Interdisciplinary Studies

Abstract: This research explores the effects of artificial intelligence (AI) on the labor market across various regions of China, using provincial-level data from 2006 to 2022. To address issues of reverse causality and ensure analytical accuracy, a fixed-effects distributed lag model is employed. The study investigates three key dimensions: total employment, wages, and employment across different skill levels. COVID-19 indicators are included to account for policy changes and economic fluctuations. The results reveal a relationship between the rising adoption of AI and employment opportunities for low- to medium-skilled workers; however, high-skill occupations appear less affected. Evidence also suggests that the integration of AI technologies influences wages, consistent with the assumptions of skill-biased technological change (SBTC). These findings provide empirical confirmation of the disruptive impact of AI on the Chinese labor market, offering insight into how technological advancement affects employment in emerging economies. The study offers guidance for policymakers and corporate leaders addressing labor challenges in an AI-driven economy.

Keywords: AI; Employment Structure; Total Employment; Wage (search for similar items in EconPapers)
Pages: 9 pages
Date: 2025-04
New Economics Papers: this item is included in nep-ain, nep-cna and nep-sea
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Published in Proceedings of the 39th International RAIS Conference on Social Sciences and Humanities, April 17-18, 2025, pages 101-110

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