Drinking in despair: Unintended consequences of automation in China

Abstract

AbstractThe side effects of technological progress on the economy have been discussed frequently, but little is known regarding its health consequences. By combining the national individual‐level panel data of alcohol drinking with the prefecture‐level robot exposure rate in China, we find that one more robot exposure rate could induce up to 2.2% points increase in the probability of problem drinking. Such a pattern of problem drinking is explained by negative emotions, which can be ascribed to job loss due to substitution, higher income vulnerability, and reduced organization participation. Further, we provide evidence that automation can incur health costs, particularly for easily substituted workers, which would exacerbate health inequality in China. This paper sheds light on the impact of automation and the social incentives of problem drinking, emphasizing the possibly heterogeneous health cost accompanied by the automation process.