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Agglomeration of human capital: Evidence from city choice of online job seekers in China

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  • Su, Yaqin
  • Hua, Yue
  • Deng, Lanfang

Abstract

Micro-level evidence on the migration decision and locational choice of high-skill workers remain scarce in developing economies. This paper studies whether high-skill individuals in China are attracted by cities’ human capital when choosing workplaces. Using over 50,000 resumes of online job seekers from a leading recruitment website, and by estimating a conditional logit model, we find that human capital at the city level plays a prominent role in determining the preferred workplace of high-skill workers. We further show that a city’s human capital is particularly attractive to better-educated individuals, new college graduates, and job seekers who intend to relocate to another city of higher economic hierarchy. We also discuss the role of agglomeration economies and spatial sorting in shaping the agglomerative behaviors of high-skill workers.

Suggested Citation

  • Su, Yaqin & Hua, Yue & Deng, Lanfang, 2021. "Agglomeration of human capital: Evidence from city choice of online job seekers in China," Regional Science and Urban Economics, Elsevier, vol. 91(C).
    • Handle: RePEc:eee:regeco:v:91:y:2021:i:c:s0166046220303069
    DOI: 10.1016/j.regsciurbeco.2020.103621
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    More about this item

    Keywords

    Human capital; City choice; Conditional logit model; Agglomeration economies; Spatial sorting;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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