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The impact of human capital and housing supply on urban growth

Author

Listed:
  • Simon C Büchler

    (Massachusetts Institute of Technology, USA)

  • Dongxiao Niu

    (Maastricht University, The Netherlands)

  • Anne K Thompson

    (Massachusetts Institute of Technology, USA)

  • Siqi Zheng

    (Massachusetts Institute of Technology, USA)

Abstract

We empirically analyse the impact of human capital and housing supply on urban growth in the US and China. Integrating the heterogeneity of housing supply helps determine how a positive human capital shock translates into more population, higher house prices, or higher wages. To causally estimate this effect, we use a rich urban-level data set, choose our controls using the post-double-selection methodology, and instrument human capital with the per capita number of historical educational institutions. We find that human capital positively impacts urban population, house price and wage growth. While an elastic housing supply reinforces the impact on urban growth, it reduces house price growth and wage growth. Our results infer that human capital increases productivity in both countries and acts as an amenity only in the US.

Suggested Citation

  • Simon C Büchler & Dongxiao Niu & Anne K Thompson & Siqi Zheng, 2024. "The impact of human capital and housing supply on urban growth," Urban Studies, Urban Studies Journal Limited, vol. 61(2), pages 214-230, February.
    • Handle: RePEc:sae:urbstu:v:61:y:2024:i:2:p:214-230
    DOI: 10.1177/00420980231182074
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    References listed on IDEAS

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