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The Impact of High-Speed Rail on Labor Spatial Misallocation– Based on Spatial Difference-in-Differences Analysis

Author

Listed:
  • Linnan Yan
  • Menger Tu
  • Andre Luis Squarize Chagas
  • Lufeng Tai

Abstract

Existing studies neglected to assess the resource allocation effect of high-speed railway (HSR). This paper examines the impact of HSR on labor spatial misallocation in China by applying a modifified spatial difference-in-differences approach, which identify local treatment effect, spillover effect on treated and untreated regions. The study fifinds: (1) Opening HSR alleviates not only the local labor misallocation but also the misallocation in surrounding areas to a greater extent, including cities with HSR (treatment group) and without HSR (control group), which contributes to the overall productivity increase. The spillover effect of HSR is larger than the direct effect. (2) The largest spillover effect occurs in adjacent areas near 350 km apart, while the spillover effect disappears beyond 500 km. (3) The direction and magnitude of HSR effect depend on the urban scale. For large-scale cities, the impact of opening HSR is greater versus small-scale ones.

Suggested Citation

  • Linnan Yan & Menger Tu & Andre Luis Squarize Chagas & Lufeng Tai, 2022. "The Impact of High-Speed Rail on Labor Spatial Misallocation– Based on Spatial Difference-in-Differences Analysis," Working Papers, Department of Economics 2022_19, University of São Paulo (FEA-USP).
    • Handle: RePEc:spa:wpaper:2022wpecon19
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    More about this item

    Keywords

    high-speed railway; spatial difference-in-differences; labor spatial;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General

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