Do Industrial Robots Influence Labor Migration? Retrospective Findings from China

Industrial robot incorporation into manufacturing has changed the labor market, impacting individual migration decisions (IMD). Since China is at the forefront of global industrial robot usage, the effect of automation on labor mobility has become a significant concern. This research examines industrial robot applications (IRA) and individual migration decisions (IMD) among China's floating population, seeking to understand the influence of technology developments on migration trends. A conditional logit model is employed using CMDS data and city-level robot information, modeling migration as a destination-choice process in which individuals select among competing cities based on relative utility derived from local economic conditions and automation exposure. The model examines migration choices according to individual traits, city-level controls, and IRA exposure while considering heterogeneity effects between groups and determining underlying migration mechanisms. The results show a strongly negative correlation between IRA and IMD, with a coefficient of -0.325 (p-value = 0.001), implying that greater IRA lowers migration to robot-intensive cities. The highly educated have a coefficient of -0.138 (p-value = 0.049), whereas low-educated individuals have a coefficient of -0.453 (p-value = 0.004) and are at greater risk of being displaced by automation. Migration is positively related to increased wages (coefficient = 0.578, p-value = 0.000) and negatively influenced by expensive housing (coefficient = -0.324, p-value = 0.003). The findings reflect on the intricate relationship between technology and migration patterns. Policymakers need to tackle these determinants to maximize labor market policies and offset the inequalities arising from automation.