Do industrial robots affect the labour market? Evidence from China

Abstract

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.