Abstract:Technological progress drives productivity gains while also disrupting labor markets. The integration of artificial intelligence (AI) into emerging economies heightens concerns about job displacement, particularly among low- and middle-skilled workers. This study investigates the labor market impact in Wuhan, China, of Baidu’s Apollo Go, a robotaxi service. We collect over 200,000 daily observations of taxi drivers and their income, and we employ a Difference-in-Differences (DiD) approach to estimate the short run impact of the introduction of robotaxis on the income of traditional taxi drivers.