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Urban and Regional Economics Seminars

Unequal Productivity Gains in Urban China

Pierre-Philippe Combes (GATE LSE, Sciences Po Paris)


Friday 27 October 2017 13:00 - 14:30

NAB LG.09, Alumni Theatre, Lower Ground Floor, New Academic Building, LSE, 54 Lincoln's Inn Fields, WC2A 3LJ

About this event

We estimate urbanisation effects in China for various groups of workers identified by their skill level and Hukou (migration) status. Considering both city and city-industry characteristics allows us to better disentangle agglomeration economies, human capital and migrant externalities, and substitution effects within the local production function. Location matters for Chinese workers' earnings. High-skilled urban workers experience large gains due to agglomeration effects, a strong positive rural migrant externality at the city level and a smaller positive human capital externality at the city-industry level. Low-skilled urban workers also benefit from agglomeration effects and from the presence of migrants but to a lower extent. Rural migrants are less impacted and do not gain from agglomeration except through market access. They exert a negative impact on the already set up migrants' earnings at the city-industry level. But they benefit from a human capital externality at both the city and city-industry levels, and from a migrant externality at the city level.

This event will take place in NAB LG.09, Alumni Theatre, Lower Ground Floor, New Academic Building, LSE, 54 Lincoln's Inn Fields, WC2A 3LJ.

This series is part of the CEP's Urban and spatial programme.