Skill-Task Substitution Matrix: How Artificial Intelligence Reshapes Labor Market Structure and Exacerbates Income Polarization among Groups
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Skill-Task Substitution Matrix: How Artificial Intelligence Reshapes Labor Market Structure and Exacerbates Income Polarization among Groups

Yunfei Cui 1*
1 Northeast Agricultural University
*Corresponding author: 2764188946@qq.com
Published on 26 November 2025
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AEMPS Vol.245
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-80590-569-1
ISBN (Online): 978-1-80590-570-7
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Abstract

As artificial intelligence (AI)—a core driver of the Fourth Industrial Revolution—continues to permeate the economy and society, its impact on labor market structure and income distribution patterns has grown increasingly salient. Grounded in the "skill-task substitution matrix" framework, this paper examines how AI promotes employment structural polarization and deepens income disparities among groups by restructuring labor division and job demands. Building on a systematic review of relevant literature, the study employs empirical analysis using China’s provincial panel data (2020–2024), combined with the Gini coefficient and AI industry indicators. Results reveal that while AI adoption boosts production efficiency and high-skilled employment, it also accelerates the displacement of routine task-based jobs, widening income gaps between regions and demographic groups. Finally, the paper proposes policy recommendations for coordinated governance across technology, institutions, and culture to mitigate AI’s adverse effects on social equity.

Keywords:

Artificial Intelligence, Labor Market, Income Polarization

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Cui,Y. (2025). Skill-Task Substitution Matrix: How Artificial Intelligence Reshapes Labor Market Structure and Exacerbates Income Polarization among Groups. Advances in Economics, Management and Political Sciences,245,31-44.

References

[1]. iResearch. (2024). China Artificial Intelligence Industry Research Report 2024. [Online]. Available: https: //pdf.dfcfw.com/pdf/H3_AP202503271648275209_1.pdf.com

[2]. Wang, Y. Q., & Dong, W. (2020). How does the rise of robots affect China's labor market? Evidence from listed manufacturing companies. Economic Research Journal, 10, 1-15.

[3]. Guomin Jinglve. (2025, July 17). Guangdong secures another title as China's "No.1 Province". 20250717

[4]. Zhejiang Economic Information Center. (2025, March 21). Building digital industrial clusters and advancing digital transformation: Zhejiang approved for a new round of national-level experimental zones. 20250321

[5]. Hunan Provincial Department of Industry and Information Technology. (2024, July 30). Hunan's AI industry remains stable and shows positive momentum. 20240730

[6]. Shenzhen Electronics Chamber of Commerce. (2024). Research and analysis on China's AI industrial chain mapping. 20240126

[7]. Autor, D. H. (2013). The "task approach" to labor markets: An overview. Journal for Labour Market Research, 46(2), 185–199. https: //doi.org/10.1007/s12651-013-0128-z

[8]. Blanchard, O. J. (2019). The state of macro. Journal of Economic Perspectives, 33(2), 3–28. https: //doi.org/10.1257/jep.33.2.3

[9]. DARONACEMOGLU, PASCUAL RESTREPO. (2022). Tasks, automation, and the rise in U.S. wage inequality. Econometrica, Vol. 90, No. 5 (September, 2022), 1973–2016.

[10]. Acemoglu, D., & Restrepo, P. (2019). Automation and new tasks: How technology displaces and reinstates labor(MIT Shaping Work Project Report). Massachusetts Institute of Technology.

[11]. Autor, D. H., Katz, L. F., & Krueger, A. B. (1998). Computing Inequality: Have Computers Changed the Labor Market?​ Massachusetts Institute of Technology, Department of Economics. https: //doi.org/10.1162/003355398555874

[12]. Autor, D. H., Dorn, D., & Hanson, G. H. (2018). Import competition and the great U.S. employment sag of the 2000s(NBER Working Paper No. 24196). National Bureau of Economic Research.

[13]. Osborne, M. A. (n.d.). [AI and the future of work: Implications for policy and society](Future of Life Institute Report). Future of Life Institute.

[14]. Daron Acemoglu, Pascual Restrepo. (2022). Tasks and inequality(Boston University Department of Economics Working Paper).

[15]. Ngor Luong, N., & Arnold, Z. (2021). China’s Artificial Intelligence Industry Alliance: Understanding China’s AI Strategy Through Industry Alliances(Data Brief). Center for Security and Emerging Technology. https: //doi.org/10.51593/20200094

[16]. Angela Huyue Zhang. (2024). The promise and perils of Chinese AI regulation(Columbia Law School Working Paper). Columbia Law School.

[17]. National Bureau of Statistics of China. (2024, April 29). National Data [Web page]. https: //www.stats.gov.cn/sj/zxfb/202404/t20240429_1973412.html

References

[1]. iResearch. (2024). China Artificial Intelligence Industry Research Report 2024. [Online]. Available: https: //pdf.dfcfw.com/pdf/H3_AP202503271648275209_1.pdf.com

[2]. Wang, Y. Q., & Dong, W. (2020). How does the rise of robots affect China's labor market? Evidence from listed manufacturing companies. Economic Research Journal, 10, 1-15.

[3]. Guomin Jinglve. (2025, July 17). Guangdong secures another title as China's "No.1 Province". 20250717

[4]. Zhejiang Economic Information Center. (2025, March 21). Building digital industrial clusters and advancing digital transformation: Zhejiang approved for a new round of national-level experimental zones. 20250321

[5]. Hunan Provincial Department of Industry and Information Technology. (2024, July 30). Hunan's AI industry remains stable and shows positive momentum. 20240730

[6]. Shenzhen Electronics Chamber of Commerce. (2024). Research and analysis on China's AI industrial chain mapping. 20240126

[7]. Autor, D. H. (2013). The "task approach" to labor markets: An overview. Journal for Labour Market Research, 46(2), 185–199. https: //doi.org/10.1007/s12651-013-0128-z

[8]. Blanchard, O. J. (2019). The state of macro. Journal of Economic Perspectives, 33(2), 3–28. https: //doi.org/10.1257/jep.33.2.3

[9]. DARONACEMOGLU, PASCUAL RESTREPO. (2022). Tasks, automation, and the rise in U.S. wage inequality. Econometrica, Vol. 90, No. 5 (September, 2022), 1973–2016.

[10]. Acemoglu, D., & Restrepo, P. (2019). Automation and new tasks: How technology displaces and reinstates labor(MIT Shaping Work Project Report). Massachusetts Institute of Technology.

[11]. Autor, D. H., Katz, L. F., & Krueger, A. B. (1998). Computing Inequality: Have Computers Changed the Labor Market?​ Massachusetts Institute of Technology, Department of Economics. https: //doi.org/10.1162/003355398555874

[12]. Autor, D. H., Dorn, D., & Hanson, G. H. (2018). Import competition and the great U.S. employment sag of the 2000s(NBER Working Paper No. 24196). National Bureau of Economic Research.

[13]. Osborne, M. A. (n.d.). [AI and the future of work: Implications for policy and society](Future of Life Institute Report). Future of Life Institute.

[14]. Daron Acemoglu, Pascual Restrepo. (2022). Tasks and inequality(Boston University Department of Economics Working Paper).

[15]. Ngor Luong, N., & Arnold, Z. (2021). China’s Artificial Intelligence Industry Alliance: Understanding China’s AI Strategy Through Industry Alliances(Data Brief). Center for Security and Emerging Technology. https: //doi.org/10.51593/20200094

[16]. Angela Huyue Zhang. (2024). The promise and perils of Chinese AI regulation(Columbia Law School Working Paper). Columbia Law School.

[17]. National Bureau of Statistics of China. (2024, April 29). National Data [Web page]. https: //www.stats.gov.cn/sj/zxfb/202404/t20240429_1973412.html

Cite this article

Cui,Y. (2025). Skill-Task Substitution Matrix: How Artificial Intelligence Reshapes Labor Market Structure and Exacerbates Income Polarization among Groups. Advances in Economics, Management and Political Sciences,245,31-44.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

About volume

Volume title: Proceedings of ICFTBA 2025 Symposium: Data-Driven Decision Making in Business and Economics

ISBN: 978-1-80590-569-1(Print) / 978-1-80590-570-7(Online)
Editor: Lukášak Varti
Conference website: https://2025.icftba.org/Bratislava.html
Conference date: 12 December 2025
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.245
ISSN: 2754-1169(Print) / 2754-1177(Online)

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