IDEAS home Printed from https://ideas.repec.org/a/bla/ecopol/v38y2026i2p560-574.html

How Metro Expansion Influences Enterprise Labor Misallocation

Author

Listed:
  • Mengting Zhang
  • Ziwen Bao
  • Feng Yu
  • Changbiao Zhong

Abstract

This paper investigates the effect of metro expansion on enterprise labor misallocation in China, using a double machine learning (DML) model with data from A‐share listed companies from 2013 to 2022. Our findings reveal that metro expansion significantly mitigates enterprises' labor misallocation. This effect is more pronounced for labor‐intensive and state‐owned enterprises, as well as for those located in developing urban agglomerations and regions with advanced digital infrastructure. Further mechanism analysis shows that this reduction operates through two distinct channels. On the supply side, metro networks deepen the labor market, thereby improving job‐matching efficiency. On the demand side, by intensifying competition, metro expansion erodes enterprises' market power, thereby improving allocative efficiency through the realignment of wages with marginal productivity. This study provides empirical evidence at the micro level, highlighting the role of urban transit infrastructure in improving resource allocation.

Suggested Citation

  • Mengting Zhang & Ziwen Bao & Feng Yu & Changbiao Zhong, 2026. "How Metro Expansion Influences Enterprise Labor Misallocation," Economics and Politics, Wiley Blackwell, vol. 38(2), pages 560-574, July.
    • Handle: RePEc:bla:ecopol:v:38:y:2026:i:2:p:560-574
    DOI: 10.1111/ecpo.70042
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/ecpo.70042
    Download Restriction: no
    File URL: https://libkey.io/10.1111/ecpo.70042?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ecopol:v:38:y:2026:i:2:p:560-574. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0954-1985 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.