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Labor migration, human capital agglomeration and regional development in China

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  • Fu, Yuming
  • Gabriel, Stuart A.

Abstract

We estimate a skill-based directional migration model to assess the effects of regional human capital agglomeration on labor migration in China. Upon accounting for regional differentials in skill-based compensation, cost-of-living, amenities, and the like, model estimates indicate the importance of destination human capital concentration to high-skill migrants. In marked contrast, low-skill migrants are found to have little incentive to co-locate with high-skill workers, likely reflecting institutional and other impediments to human capital investment among low-skill migrants. Research findings suggest the importance of human capital agglomeration benefits to disparate regional growth trajectories in China.

Suggested Citation

  • Fu, Yuming & Gabriel, Stuart A., 2012. "Labor migration, human capital agglomeration and regional development in China," Regional Science and Urban Economics, Elsevier, vol. 42(3), pages 473-484.
    • Handle: RePEc:eee:regeco:v:42:y:2012:i:3:p:473-484
    DOI: 10.1016/j.regsciurbeco.2011.08.006
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    More about this item

    Keywords

    Internal migration; Human capital; Economic development; Chinese economy;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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