How does AI Affect Labor Income Share?Based on the Mechanism of Industrial Structure and Enterprise Upgrading
Artificial intelligence,as a pivotal technological advancement,not only propels industrial intelligence but also inevitably has a profound influence on factor income distribu-tion within the labor market.Based on the theory of technological progress,we use the panel data at the city and enterprise level in China from 2010 to 2021 to examine the macro and micro mechanisms mechanism of AI's impact on the share of labor income from a sys-tematic perspective.The results of the study are as follows.(1)The implementation of AI favors an increase in the labor income share at both macro and micro levels,and this con-clusion remains robust after employing instrumental variable methods,double difference approaches,and conducting a series of rigorous robustness tests.(2)At the macro level,AI can increase the share of labor income through the advancement of industrial struc-tures.(3)At the micro level,AI facilitates enterprise transformation and upgrading,thereby boosting the labor income share through improvements in innovation quality,efficiency,and total factor productivity.(3)The promotion effect of AI on labor income share is particularly obvious in enterprises with high urban population size,high urban lib-eralization level,high urban labor protection level,high enterprise size,high enterprise labor skill structure,and low enterprise labor factor intensity.The conclusions of the study provide useful insights for China to enhance its income distribution system and realize shared prosperity in the era of digitalization.
Artificial IntelligenceIndustrial Structure UpgradingEnterprise Upgrad-ingLabor Income Share