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Skills and the city in China

Author

Listed:
  • Fan, Jianyong
  • Liu, Nian
  • Tang, Wei

Abstract

This paper examines the spatial distribution and urban wage premiums of skills in China using both population censuses and labor surveys. We document an increasing concentration and urban wage premiums of occupations requiring more cognitive tasks. In large cities, the quality of cognitive skill matching between workers and occupations is significantly enhanced. Additionally, we observe stronger learning effects for workers with higher cognitive skills in these cities. However, we do not detect an urban premium for workers with higher social skills. Instead, the returns to individual social skills are more pronounced in cities with weaker institutional environments.

Suggested Citation

  • Fan, Jianyong & Liu, Nian & Tang, Wei, 2025. "Skills and the city in China," Regional Science and Urban Economics, Elsevier, vol. 111(C).
    • Handle: RePEc:eee:regeco:v:111:y:2025:i:c:s0166046224001133
    DOI: 10.1016/j.regsciurbeco.2024.104082
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    More about this item

    Keywords

    Cognitive skills; Social skills; Agglomeration economies; Urban wage premium; China;
    All these keywords.

    JEL classification:

    • 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
    • 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

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