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Talent introduction and housing price: a tale of Xi’an

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  • Huwei Wen
  • Zhao Zhao

Abstract

A comprehensive competition policy for talent introduction was first implemented in Xi’an in February 2017 and has been imitated by many cities in China ever since. Although turned out to be useful in alleviating the problem of talents loss in the lower-tier cities, the policy has been criticized for its potential effect of driving up housing prices. Using the synthetic control method proposed by Abadie and Gardeazabal (2003), we explore the influence of the competition policy for talent introduction on housing prices in Xi’an. Based on the monthly data of Xi’an and 62 control cities across 30 provinces in China from January 2015 to April 2018, we find strong evidence for the positive effect of the competition policy on housing prices. Specifically, the policy increased housing prices in Xi’an by approximately 43% until April 2018.

Suggested Citation

  • Huwei Wen & Zhao Zhao, 2019. "Talent introduction and housing price: a tale of Xi’an," Applied Economics Letters, Taylor & Francis Journals, vol. 26(11), pages 954-962, June.
  • Handle: RePEc:taf:apeclt:v:26:y:2019:i:11:p:954-962
    DOI: 10.1080/13504851.2018.1524567
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    Cited by:

    1. Yang Wang & Kangmin Wu & Jing Qin & Changjian Wang & Hong’ou Zhang, 2020. "Examining Spatial Heterogeneity Effects of Landscape and Environment on the Residential Location Choice of the Highly Educated Population in Guangzhou, China," Sustainability, MDPI, vol. 12(9), pages 1-20, May.
    2. Yue Ying & Mila Koeva & Monika Kuffer & Kwabena Obeng Asiama & Xia Li & Jaap Zevenbergen, 2022. "The Perception of the Vertical Dimension (3D) through the Lens of Different Stakeholders in the Property Market of China," Land, MDPI, vol. 11(2), pages 1-29, February.
    3. Jiale Zhou & Xiaofen Yu & Xizan Jin & Nuannuan Mao, 2021. "Government Competition, Land Supply Structure and Semi-Urbanization in China," Land, MDPI, vol. 10(12), pages 1-29, December.

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