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Talent in the public sector: The role of migration and housing policies

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  • Dai, Tiantian
  • He, Chao
  • Jiang, Shenyi

Abstract

Misallocating talent can have significant costs for society. Previous studies have shown that reducing mobility barriers enhances talent allocation across regions, yet the impact on talent allocation between the public and private sectors, as well as the quality of the public sector, remains unclear. This paper presents a two-city, two-sector model incorporating endogenous location and occupational choices to address this gap. We find that changes in the value or supply of residence quotas (hukou) do not always influence public employment quality. We also analytically characterize the conditions under which they do, which involve the value and supply of hukou, wages in the government sector, and productivity differentials across cities. In the same environment, however, changes in land availability do not affect talent distribution across the public and private sectors.

Suggested Citation

  • Dai, Tiantian & He, Chao & Jiang, Shenyi, 2023. "Talent in the public sector: The role of migration and housing policies," Economic Modelling, Elsevier, vol. 129(C).
    • Handle: RePEc:eee:ecmode:v:129:y:2023:i:c:s0264999323003358
    DOI: 10.1016/j.econmod.2023.106523
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    More about this item

    Keywords

    Labor mobility; Hukou; Land policy; Heterogeneous agents; Public sector; Occupational choice;
    All these keywords.

    JEL classification:

    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets

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