Generative artificial intelligence causes displacement for white-collar workers but reduces regional opportunity disparities

Recent developments of generative artificial intelligence (GenAI) have reignited discussions about technological unemployment, yet empirical evidence remains scarce. Using a comprehensive dataset of over one million online job postings from China spanning 2018 to 2024, this study provides a timely assessment of GenAI’s impact on local and regional labor markets following the surge of GenAI tools in late 2022. Our analysis reveals a nontrivial job displacement effect of GenAI in the short and medium run, disproportionately affecting entry-level, high-wage positions and highly-educated workers. Notably, this displacement effect is more pronounced in larger, more economically developed cities, suggesting a reduction in job opportunity disparities across regions in era of GenAI. We also find that lower labor costs and higher occupation diversity increase the resilience of local labor markets to the disruptive effects of GenAI. These findings offer crucial insights for policymakers to mitigate the adverse consequences of GenAI while harnessing its potential for positive societal transformation.