Abstract: The industrial robots have an important impact on the upgrading of the manufacturing industry and the transformation of economic structure.However,facing the wave of industrial robots replacing labor,what adjustments will the local labor market make in employment and wages? Based on the instrumental variable method and data of China's Labor-force Dynamics Survey from 2012 to 2016,the study shows that there is no evidence that robots cause total job losses,but they do lead to the re-allocation of labor among different sectors.The employment probability of the manufacturing sector decreased,but this loss was fully offset by additional jobs in the service sector.Moreover,robots have significantly increased the working hours of local labor,mainly due to the increase in working hours of labor in the service sector.In addition,the robots have a small effect on the overall local wage growth,but the wage structure has been adjusted accordingly.Wages and skill premiums in the manufacturing sector have increased rapidly,but wages in the service sector have increased slowly,and there was no significant change in skill premiums.Accordingly,the government needs to consider its relationship with labor market employment and wages when formulating policies for industrial intelligent development,especially considering the interests of the manufacturing sector and low-skilled labor groups.Implementing corresponding employment and income redistribution policies should be made to reduce adjustment costs caused by industrial robots.

Key words: industrial robots, local labor market, labor allocation, wages, skill premium