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Volume 54 Issue 9
November 2022
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Citation: Dianfan YU, Hong JIANG and Lei CHEN. The Non-linear Relationship between Automated Capital Biased Technical Change and Employment[J]. Academic Monthly, 2022, 54(9): 60-72. shu

The Non-linear Relationship between Automated Capital Biased Technical Change and Employment

  • Based on data of the listed manufacturing companies from 2012 to 2019, this paper theoretically analyzes and empirically tests the impact and internal mechanism of automated capital-biased technical change on the total employment and structure. The research found: (1) There is a U-shaped non-linear relationship between the automated capital-biased technical change and total employment, and the impact of the technical change on the employment of high- and low-skilled labor is inverted U-shape and U-shape respectively. (2) Enterprise productivity and output scale play a non-linear effect on the impact of automated capital-biased technical change on the total employment and labor skill structure. For the sample in this paper, automated capital-biased technical change has produced a creative effect on the employment of high-skilled labor through the productivity improvement effect and the scale reduction effect, while which reduce total employment and the low-skilled labor force. Therefore, improving the skill level of low-skilled labor, vigorously cultivating high-skilled labor, strengthening the skill matching of automation capital-biased technical change with labor force, and exploring in-depth the positive role of productivity and scale effects for development of automation technology are important measures to achieve stable employment and promote high-quality employment.
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          The Non-linear Relationship between Automated Capital Biased Technical Change and Employment

          Abstract: Based on data of the listed manufacturing companies from 2012 to 2019, this paper theoretically analyzes and empirically tests the impact and internal mechanism of automated capital-biased technical change on the total employment and structure. The research found: (1) There is a U-shaped non-linear relationship between the automated capital-biased technical change and total employment, and the impact of the technical change on the employment of high- and low-skilled labor is inverted U-shape and U-shape respectively. (2) Enterprise productivity and output scale play a non-linear effect on the impact of automated capital-biased technical change on the total employment and labor skill structure. For the sample in this paper, automated capital-biased technical change has produced a creative effect on the employment of high-skilled labor through the productivity improvement effect and the scale reduction effect, while which reduce total employment and the low-skilled labor force. Therefore, improving the skill level of low-skilled labor, vigorously cultivating high-skilled labor, strengthening the skill matching of automation capital-biased technical change with labor force, and exploring in-depth the positive role of productivity and scale effects for development of automation technology are important measures to achieve stable employment and promote high-quality employment.

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