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The impact of automation on human capital investment

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  • Yang, Jia
  • Pei, Yu
  • Qiang, Wei

Abstract

This paper examines the impact of automation on household human capital investment using a micro-sample from the China Family Tracking Survey (CFPS). The findings suggest that the advance of automation stimulates household human capital investment. This impact is heterogeneous at both the household level and the regional level. For households where the head of the household is male or where the head of the household has a low level of education, it is easier to invest in education due to technological advances. In addition, mechanism analysis suggests that automation positively affects household human capital investment indirectly through public spending on education. This study contributes to a better understanding of how governments and households can cope with the technological shocks brought about by automation.

Suggested Citation

  • Yang, Jia & Pei, Yu & Qiang, Wei, 2024. "The impact of automation on human capital investment," Finance Research Letters, Elsevier, vol. 62(PB).
    • Handle: RePEc:eee:finlet:v:62:y:2024:i:pb:s1544612324002484
    DOI: 10.1016/j.frl.2024.105218
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