Robots and wage inequality: Evidence from individuals in China

This paper investigates how industrial robot adoption affects wage inequality in China, home to the largest and fastest-growing robot stock. Using CFPS and IFR data, a county-level robot exposure index and a two-stage least squares approach reveal that robot use worsens wage polarization. Medium-skilled workers suffer the most annual wage losses due to reduced hours, despite modest hourly wage gains. Low-skilled workers are minimally affected, while high-skilled workers gain slightly per hour but not annually. Trade openness and demographics influence these effects, with older workers disproportionately impacted. The study stresses the need for policies to address automation’s unequal effects.