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Growing without Divergence: The Impact of Innovation on Low- and High-skilled Migration in China

Author

Listed:
  • Suqin Ge
  • Naijia Guo
  • Zibin Huang
  • Junsen Zhang
  • Li Zhang

Abstract

This paper examines how innovation shapes migration across skill groups. Using Chinese microdata from 2005-2015, we find that cities with faster patent growth attract more low-skilled than high-skilled migrants, opposite to patterns in developed countries. These cities see similar wage growth for both groups but limited amenity gains. We develop and estimate a spatial equilibrium model showing that low-skilled workers prioritize wages, while high-skilled workers value amenities, which rise with the share of skilled workers. Patent shocks draw in more low-skilled workers, reducing amenities and deterring high-skilled migration. Overall, technological growth raised wages and welfare without increasing spatial inequality.

Suggested Citation

  • Suqin Ge & Naijia Guo & Zibin Huang & Junsen Zhang & Li Zhang, 2026. "Growing without Divergence: The Impact of Innovation on Low- and High-skilled Migration in China," RFBerlin Discussion Paper Series 26176, ROCKWOOL Foundation Berlin (RFBerlin).
    • Handle: RePEc:crm:wpaper:26176
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    References listed on IDEAS

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    3. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521747387, June.
    4. Hao, Tongtong & Sun, Ruiqi & Tombe, Trevor & Zhu, Xiaodong, 2020. "The effect of migration policy on growth, structural change, and regional inequality in China," Journal of Monetary Economics, Elsevier, vol. 113(C), pages 112-134.
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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
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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