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The Effect of the Change in the Urban Household Registration Criteria on Talent Flow and Business Innovation

【Authors】
SONG Hong, LUO Jigang, JIANG Lingduo
【WorkUnit】
SONG Hong, LUO Jigang(Fudan University, 200433)JIANG Lingduo(University of International Business and Economics, 100029)
【Abstract】

Recent years have seen the continued slowdown in economic growth and a shrinking working-age population. The development model relying on the quantity of labor is unsustainable, and the contribution of labor to economic growth is declining. In this context, exploring new channels to improve labor allocation is of great significance for promoting the accumulation of human capital and boosting economic development. Starting with the decision of graduates on which city to work in, this paper examines the impact of cities' household registration criteria on talent flow and business innovation. The main findings are as follows. First, the higher the registration criteria, the higher the brain drain possibility, as higher criteria will drive graduates to leave the city. Second, the effect of the household registration policy is stronger on females, students from a rural background and non-professionals. Third, the registration criteria can further influence business innovation in the city by changing the quantity and structure of talents. Focusing on talent flow, this paper provides a new perspective and thought on the socioeconomic influence of the household registration system reform.


JEL:J53, J58

【KeyWords】
Household Registration Criteria, Household Registration System, Talent Flow, Business Innovation