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The Impact of Artificial Intelligence on Labor Market: Evidence from China

Author

Listed:
  • Ruitao Li

    (Southwest University of Political Science and Law, Chongqing, China)

  • Chuanxian Li

    (Southwest University of Political Science and Law, Chongqing, China)

  • Shijun Guo

    (Chongqing University, Chongqing, China)

Abstract

The rapid advancement of artificial intelligence (AI) technology has been the driving force behind the new wave of technological revolution. In this study, we examine the impact of AI technology on corporate employment decisions. Using a sample of Chinese listed firms from 2012 to 2021, we find that AI technology applications have a positive influence on the total number of corporate employees. In addition, we find that this positive relationship is more pronounced in non-state-owned enterprises and in asset-light companies. Furthermore, our mechanism analysis indicates that AI technology has positive effects on corporate employment by increasing sales revenue and attenuating financial constraints. In general, our findings highlight the importance of AI technology to the labour market and have several implications for corporate employment decisions.

Suggested Citation

  • Ruitao Li & Chuanxian Li & Shijun Guo, 2024. "The Impact of Artificial Intelligence on Labor Market: Evidence from China," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 26(67), pages 867-867, August.
    • Handle: RePEc:aes:amfeco:v:26:y:2024:i:67:p:867
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    References listed on IDEAS

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    3. Benjamin David, 2017. "Computer technology and probable job destructions in Japan: An evaluation," Post-Print hal-01549790, HAL.
    4. David, Benjamin, 2017. "Computer technology and probable job destructions in Japan: An evaluation," Journal of the Japanese and International Economies, Elsevier, vol. 43(C), pages 77-87.
    5. Corina Pelau & Irina Ene & Mihai-Ionut Pop, 2021. "The Impact of Artificial Intelligence on Consumers’ Identity and Human Skills," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 23(56), pages 1-33, February.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Artificial intelligence; patents; labour market; employees;
    All these keywords.

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • G3 - Financial Economics - - Corporate Finance and Governance
    • J0 - Labor and Demographic Economics - - General

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