Urban development in China: On the sorting of skills

For advanced economies, it is a well-established stylized fact that large cities are relatively skill abundant. emerging markets, like China, this relationship less well established. We show, using recently developed tests, also in China higher skills sort into larger locations. This sorting process consistent with the comparative advantage of cities. identify two types spatial units (Core-Cities and Extended-Cities) analyse for three (education skills, sector occupation skills). The across stronger Core-Cities than Extended-Cities, education sector- 2010 2000. interpret these results as an indication investments in, example, infrastructure institutional liberalization (such relaxation Hukou system), stimulates