Artificial Intelligence Policy and Wage Gaps: Evidence from China

Jinghai Li; Jingshan Huang; Huanhuan Yang

doi:10.62177/apemr.v3i5.1737

Authors

Jinghai Li Guangdong University of Finance and Economics
Jingshan Huang Guangdong University of Finance and Economics
Huanhuan Yang Guangzhou Market Supervision and Management Development Research Center

DOI:

https://doi.org/10.62177/apemr.v3i5.1737

Keywords:

Artificial Intelligence Policy, Wage Gap, Innovation Technology Benefit Bias, Industrial Structure, Technology Diffusion

Abstract

A new round of technological revolution centered on artificial intelligence (AI) is reshaping the global labor market. Using panel data for 280 Chinese cities from 2011 to 2023, this study treats the establishment of National New-Generation Artificial Intelligence Innovation and Development Pilot Zones (AIIDPZs) as a quasi-natural experiment and employs a staggered difference-in-differences model to examine the impact of AI policy on wage gaps. The results show that the AIIDPZs significantly widen wage gaps within cities. Mechanism tests point to three channels: innovation technology benefit bias, industrial restructuring, and technology diffusion. The effects are stronger in cities in the eastern region, cities with well-developed digital infrastructure, and cities with lower human capital. These findings support incorporating the effects of income distribution into policy evaluation, strengthening skills training and mechanisms for sharing innovation gains, tailoring support to local conditions, and coordinating AI policy with employment policy.

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