Artificial Intelligence Policy and Wage Gaps: Evidence from China
Jinghai Li, Jingshan Huang, 欢欢 杨 · Asia Pacific Economic and Management Review · 14 Oct 2026
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- Will AI widen inequality? · its finding supports the claim (why studies differ)
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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.
About this publication
Academic journal. Published in an academic journal — typically peer-reviewed before publication, though indexing alone doesn't guarantee review depth.
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- 2026 (recently)
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