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What cities pay for: IT vs. interpersonal skills in China’s urban labor markets

Author

Listed:
  • Hong, Dian
  • Qiu, Sirui

Abstract

We use the near-universe of Chinese online job ads (2016–2023; 3.2M postings) to measure job-level skill demand and city-specific skill premia. Combining keyword dictionaries with a Chinese BERT classifier, we construct standardized intensities for skills. Three facts emerge. (i) Skill requirements vary sharply across metropolitan areas (MAs), especially for IT. (ii) Prices do not always track skill intensities: high skill demand does not imply high skill premium. (iii) IT and interpersonal premia polarize across MAs and also polarize within jobs. Results offer policy-relevant descriptive implications for worker location and firm siting.

Suggested Citation

  • Hong, Dian & Qiu, Sirui, 2026. "What cities pay for: IT vs. interpersonal skills in China’s urban labor markets," China Economic Review, Elsevier, vol. 99(C).
  • Handle: RePEc:eee:chieco:v:99:y:2026:i:c:s1043951x26000799
    DOI: 10.1016/j.chieco.2026.102729
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    Keywords

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    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
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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