Abstract
Human capital plays a crucial role in regional innovation and economic progress, which has increasingly been highlighted in research. However, rising housing costs in cities can push talent away, causing brain drain and hindering local innovation. Within this context, China has seen widespread adoption of talent housing policies (THPs) aimed at providing housing assistance for the high-skilled labor force, although the ramifications of these initiatives remain largely underexplored. Based on labor force heterogeneity, this study investigates the effects of THPs targeted at high-skilled labor on the mobility of both high- and low-skilled workers and their consequent impact on regional innovation. Our findings reveal that while THPs bolster the local pool of highly skilled human capital and attract more low-skilled workforce, enhancing regional innovation through labor–skill complementarities, they concurrently elevate housing costs for low-skilled laborers, reducing their long-term settlement intensions and potentially hindering a city's innovation trajectory.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
