Industrial Robots and Redundant Employees: Evidence from the Labor Market of Chinese State-owned Enterprises

Abstract

Industrial robots are becoming increasingly widely used in enterprises. This article empirically studies the impact of industrial robot use on redundant employees in state-owned enterprises using data from 2012-2017 China A-share listed companies. Unlike previous research conclusions, this study found that the use of industrial robots promoted an increase in redundant employees in state-owned enterprises. For every 1% increase in the amount of investment in industrial robots, the number of redundant employees increased by approximately 0.86%. Furthermore, the degree of impact showed heterogeneity in terms of the region where the state-owned enterprise was located and the level of market competition. The findings of this study provide Chinese evidence for studying the relationship between industrial robots and redundant employees in enterprises, which can help provide ideas and reference for better achieving the economic development goals of state-owned.