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Influences of environmental regulations on skill premium: mediating effect of industrial structure optimization

Author

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  • Shu Kedong

    (School of Economics of Hefei University of Technology)

  • Lu Yueyu

    (School of Economics of Hefei University of Technology)

  • Yu Ziyan

    (School of Economics of Hefei University of Technology)

  • Kuai Peng

    (School of Economics of Hefei University of Technology)

  • Zhang Shu’an

    (Shanghai Lixin University of Accounting and Finance)

Abstract

Environmental regulation could affect skill premium by affecting the relative supply and demand for skilled labor and non-skilled labor; meanwhile, it could also exert influences on skill premium indirectly by optimizing industrial structure. This essay conducts empirical tests based on the panel data of Chinese cities at prefecture level or above from 2005 to 2016 by analyzing the influence mechanism of environmental regulations on skill premium as well as the intermediate effect of industrial structure. The results show that generally environmental regulation has remarkable promoting effect on skill premium and the industrial structure shows significant positive mediating effect; however, the mediating effect of industrial structure shows regional heterogeneity, which is negative in the eastern and western regions and positive in the central region. The results of the research could provide a theoretical basis and decision-making references for China in reasonable control of skill premium and guaranteeing skilled labors.

Suggested Citation

  • Shu Kedong & Lu Yueyu & Yu Ziyan & Kuai Peng & Zhang Shu’an, 2021. "Influences of environmental regulations on skill premium: mediating effect of industrial structure optimization," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 23(2), pages 245-273, April.
    • Handle: RePEc:spr:envpol:v:23:y:2021:i:2:d:10.1007_s10018-020-00288-1
    DOI: 10.1007/s10018-020-00288-1
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