The Impact of Artificial Intelligence on China’s Labor Market
The Impact of Artificial Intelligence on China’s Labor Market

Author(s): Mayuree Santhadkitjakarn, Somtip Watanapongvanich
Subject(s): Human Resources in Economy, Labour and Social Security Law
Published by: Scientia Moralitas Research Institute
Keywords: AI; Employment Structure; Total Employment; Wage;
Summary/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.

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