The impact of artificial intelligence policy on employment: Evidence from China

The impact of artificial intelligence (AI) policy on the labor market has attracted increasing attention. There is ongoing debate regarding the extent to which governments should intervene in the market with policy tools. This study addresses this issue by examining the effects of AI policies on the labor market. We constructed a panel dataset of listed companies on the A-shares market in China from 2009 to 2024, using the number of employees as a measure of enterprise employment. The difference-indifferences analysis indicates that AI policies significantly affect employment only for companies in AI-related industries. This finding suggests that AI policies positively influence the labor market for AI-related industries. Further analyses reveal that a lower proportion of R&D investment, a smaller number of highly educated employees, and higher average employee salaries strengthen the positive impact of AI policies on employment. This study offers significant theoretical contributions and practical implications for both academia and government regulators.