The Impact Of Human Capital Agglomeration On Urban Wage And Employment Growth

In the context of China's economy entering the new normal,the importance of human capital to economic growth is increasingly prominent.However,there are few studies on how human capital agglomeration affects urban development in China.This paper uses the 2002-2007 China Urban Household Survey(UHS)data to analyze the impact of urban-level human capital agglomeration on individual wages and employment growth in urban areas.Based on the empirical analysis,we find that human capital agglomeration has a positive impact on individual wages.A one percentage point increase in the share of college graduates raises individual wages by 2.13%.Further analysis suggests that this effect is mainly concentrated in high-skilled labor groups and high-tech industries.In addition,the accumulation of human capital has promoted employment growth at the city level.A one percentage point increase in the share of college graduates in the city increases city employment growth by 1.48%.This increasing is mainly reflected in the secondary and tertiary industries,and has a greater impact on the abstract industries.The empirical results of this paper provide empirical evidence for the theory of human capital externality,which shows that human capital agglomeration is of great significance to the economic development of Chinese cities.