<p>Employment is the biggest livelihood of the people. What kind of industrial structure is more conducive to employment creation is an important issue for the government to consider when adjusting the industrial structure. Using enterprise and city data, using a spatial dynamic panel model that takes into account both the dynamic change of dependent variables and the spatial spillover effect, and can overcome the endogenous problem between variables, this paper examines the impact of industry-related diversity and unrelated diversity on urban aggregate employment creation. The study finds that both types of diversity are conducive to urban aggregate employment creation, but the role of related diversity is more prominent in comparison. Urban heterogeneity plays an important role in regulating the employment creation effect of industrial diversity. Among them, urban absorptive capacity strengthens the employment creation effect of the two types of industrial diversity, and is more conducive to promoting the employment creation effect of related diversity. However, the level of Urban Entrepreneurship is only positive for the employment creation effect of unrelated diversity.</p>
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