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Inclusive Urban Employment: How Does City Scale Affect Job Opportunities for Different People?

Author

Listed:
  • Hong Gao

    (Department of Economics Fudan University)

  • Ming Lu

    (Department of Economics Shanghai Jiaotong University)

  • Hiroshi Sato

    (Department of Economics Hitotsubashi University)

Abstract

This paper investigates the influence of city scale on employment using data from China. Probit models of employment determination are estimated. The historical population growth during China's planned economy, when migration was directed by the government and voluntary location choice was prohibited, is used as the instrumental variable of current population size. Instrumental variables estimates show that it is more likely for individuals to gain employment in big cities. A 1 percent increase in city scale increases one's employment probability by between 0.044 and 0.050 percentage points. Moreover, the scale advantage of big cities is heterogeneous among individuals with different levels of human capital, with the least-skilled workers benefiting the most.

Suggested Citation

  • Hong Gao & Ming Lu & Hiroshi Sato, 2015. "Inclusive Urban Employment: How Does City Scale Affect Job Opportunities for Different People?," Asian Economic Papers, MIT Press, vol. 14(2), pages 98-128, Summer.
    • Handle: RePEc:tpr:asiaec:v:14:y:2015:i:2:p:98-128
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    Citations

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    Cited by:

    1. Scott Rozelle & Yiran Xia & Dimitris Friesen & Bronson Vanderjack & Nourya Cohen, 2020. "Moving Beyond Lewis: Employment and Wage Trends in China’s High- and Low-Skilled Industries and the Emergence of an Era of Polarization," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 62(4), pages 555-589, December.
    2. Wenjie Zhang & Xianqiang Zou & Chuliang Luo & Lulu Yuan, 2024. "Hukou reform and labor market outcomes of urban natives in China," Journal of Population Economics, Springer;European Society for Population Economics, vol. 37(2), pages 1-41, June.
    3. Feng Liu & Kangning Xu & Meina Zheng, 2018. "The Effect of Environmental Regulation on Employment in China: Empirical Research Based on Individual-Level Data," Sustainability, MDPI, vol. 10(7), pages 1-23, July.
    4. Lu, Ming & Xia, Yiran, 2016. "Migration in the People’s Republic of China," ADBI Working Papers 593, Asian Development Bank Institute.
    5. Chen, Binkai & Liu, Dan & Lu, Ming, 2018. "City size, migration and urban inequality in China," China Economic Review, Elsevier, vol. 51(C), pages 42-58.
    6. Zhuqing Yang & Yuanyuan Zhu & Yulin Zhang, 2022. "Does urban shrinkage lower labor productivity? The role of spatial expansion," Regional Science Policy & Practice, Wiley Blackwell, vol. 14(S2), pages 106-117, November.

    More about this item

    Keywords

    employment opportunitities; China; employment determination; migration; cities; city scale;
    All these keywords.

    JEL classification:

    • J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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