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When facing threats from automation, a worker residing in a large Chinesecity might not be as lucky as a worker in a large U.S. city, depending on thetype of large city in which one resides. Empirical studies found that largeU.S. cities exhibit resilience to automation impacts because of the increasedoccupational and skill specialization. However, in this study, we observepolarized responses in large Chinese cities to automation impacts. Thepolarization might be attributed to the elaborate master planning of thecentral government, through which cities are assigned with different industrialgoals to achieve globally optimal economic success and, thus, a fast-growingeconomy. By dividing Chinese cities into two groups based on theiradministrative levels and premium resources allocated by the centralgovernment, we find that Chinese cities follow two distinct industrialdevelopment trajectories, one trajectory owning government support leads to adiversified industrial structure and, thus, a diversified job market, and theother leads to specialty cities and, thus, a specialized job market. Byrevisiting the automation impacts on a polarized job market, we observe aSimpson's paradox through which a larger city of a diversified job marketresults in greater resilience, whereas larger cities of specialized job marketsare more susceptible. These findings inform policy makers to deploy appropriatepolicies to mitigate the polarized automation impacts.

Automation Impacts on China's Polarized Job Market