A Quantitative Analysis Study on the Impact of Artificial Intelligence Technology on the Labor Market

Abstract

This study focuses on the impact of artificial intelligence (AI) technology on the labor market. By employing quantitative research methods such as panel data analysis and Ordinary Least Squares (OLS) regression model, and utilizing unbalanced panel data of 31 provincial-level administrative regions in China from 2010 to 2022, it empirically examines the associations between the level of AI technology and various indicators of the labor market. In this study, the “fixed asset investment in the information transmission, computer services, and software industry across the society” is used as an indicator to measure the development level of AI. The employment numbers (subdivided into the number of employed persons in urban units and rural enterprises) is taken as the core variable. Meanwhile, the per capita disposable income of residents (distinguished between urban and rural areas) is selected as a proxy variable for the salary level, and the regional gross domestic product is introduced as a control variable. The study finds that AI technology has, to a certain extent, promoted the overall growth of employment, but has aggravated the polarization phenomenon of the employment structure and had a substitution effect on rural labor. At the same time, AI technology has significantly raised the overall salary level of the labor force without leading to salary polarization. Based on the above findings, this study puts forward policy suggestions such as strengthening labor skills training, promoting the upgrading of industrial structure, and improving the social security system, in order to cope with the challenges and opportunities presented by technological progress.