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Generative AI impacts on intra-urban inequality and skill premium in Beijing

arXiv 2605.25505 ↗First posted 25 May 2026cs.CY cs.AI econ.GNcited by 0

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Abstract (arXiv)

Generative artificial intelligence (GenAI) is the first automation wave to reach high-cognitive tasks at scale, yet its effects on intra-urban inequality remain largely unknown. Using 5 million job postings from Beijing (2018--2024), we construct a neighborhood-level GenAI Exposure Index by aggregating task-level assessments from five leading large language models. We examine the spatial, structural and causal mechanisms of this shock. We find that GenAI exposure is highly concentrated in the city's core districts, deepening the intra-urban AI divide. Since 2023, high-exposure neighborhoods have experienced wage stagnation even as they continue to attract high-skilled workers -- a "high-skill trap." This wage penalty is driven by task de-skilling and intensified labor-market crowding. A difference-in-differences design centered on ChatGPT's release supports a causal interpretation. These findings challenge the prevailing theory of skill-biased technological change and provide a basis for inclusive AI governance in global technology hubs.

Key facts. No citing papers in the map yet (data through 14 Oct 2026). Builds on 3 of its 57 references that are in the map. First posted on arXiv 25 May 2026.

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References · 3

  1. 2019The role of artificial intelligence in achieving the Sustainable Development Goalscited by 100
  2. 2023The impact of generative artificial intelligence on socioeconomic inequalities and policy makingcited by 20
  3. 2023Large Language Models at Work in China's Labor Marketcited by 4

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