How Do City Size and Immigration Policies Affect Labor Mobility?

Abstract

This paper uses the micro data from the National Health Commission’s “China floating population dynamic monitoring survey” (CMDS) project, and uses probit and Ivprobit models to analyze the impact of policy selection on Labor mobility Decision-making under different city sizes. The results show that: (1) the larger the city size, the more conducive to labor inflow, and the externality of human capital has a positive regulatory effect; (2) the impact of city size on Labor mobility has policy screening heterogeneity, the more obvious the policy threshold, the more conducive to high-level labor inflow. Making more reasonable labor policy, reducing the threshold of labor inflow, breaking the barriers of labor inflow, balancing the gap between high skilled labor force and low skilled labor force, weakening the crowding out effect of urban scale expansion and labor policy can effectively attract talents and promote urban development.