Job automation in China: who is at risk and where are they located?

Abstract

Concerns about technological unemployment are resurfacing during the most recent industrial revolution. The potential for individuals to be resilient to automation and artificial intelligence shocks may depend on individual characteristics such as age, gender, and education, as well as their location. China is the world’s second most populated country, is developing, and is dependent on cheap low-skilled employment. Despite the anticipated widespread influence of Industry 4.0 automation in China, there is limited understanding of its unique impact in the Chinese setting. Using data from the CFPS (China Family Panel Study) survey, we empirically examine the factors that influence an individual’s likelihood of being at high risk of automation. We control for an individual’s provincial location and their urban/rural residency to examine the role played by location in shaping automation risk. The risk of job automation is not uniform across individuals and locations in China. Younger workers, women, and those with lower levels of education face a higher likelihood of automation related job displacement. Interestingly, individuals in urban areas are more at risk from job automation which is contrary to prior findings and existing literature.

Keywords

• Automation
• China
• labour market
• location
• individual characteristics
• Economics