Do industrial robots affect the labour market? Evidence from China

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.