The Relationship between Housing Price, Teacher Salary Improvement, and Sustainable Regional Economic Development

Chaohai Shen (), Tong Sheng, Xingheng Shi, Bingquan Fang, Xiaoqian Lu and Xiaolan Zhou ()
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Chaohai Shen: Faculty of Economics and Management, East China Normal University, Shanghai 200062, China
Tong Sheng: Faculty of Economics and Management, East China Normal University, Shanghai 200062, China
Xingheng Shi: Faculty of Economics and Management, East China Normal University, Shanghai 200062, China
Bingquan Fang: KoGuan School of Law, Shanghai Jiao Tong University, Shanghai 200030, China
Xiaoqian Lu: Faculty of Economics and Management, East China Normal University, Shanghai 200062, China
Xiaolan Zhou: Faculty of Economics and Management, East China Normal University, Shanghai 200062, China

Land, 2022, vol. 11, issue 12, 1-21

Abstract: In the post pandemic era, most of the countries are facing challenges in economic recovery, while investing in creative human capital such as teachers by increasing their salaries can be one of the policy options for governments to drive development. Housing price, however, may impact the working of these policies. Using the panel data of 31 provincial regions in China during 2006–2018, we evaluated the relationship between housing price, the improvement in teacher salary, and sustainable regional economic development. From the perspective of imbalanced regional development, we discovered the heterogeneity in the rate of return on education investment in terms of teacher salary. Higher teacher salary plays a more active role in the sustainable development of underdeveloped regions, and the crowding-out effect of housing price in Western China is the most intense. The results further provide some policy implications on efficiently promoting the coordinated development of sustainable regional economies by improving the creative human capital cultivators’ salaries. This paper verifies the significance of housing price dynamics from a new perspective based on educational investment. Overall, our study provides theoretical support for improving teachers’ income to promote regional economic development and further provides guidance for the government to carry out macro control to promote regional economic development with changes in housing price dynamics. Our study aims to link land systems, particularly the housing market, to sustainability and public policy.

Keywords: teacher salary; urbanization; housing price; public policy; regional development (search for similar items in EconPapers)
JEL-codes: Q15 Q2 Q24 Q28 Q5 R14 R52 (search for similar items in EconPapers)
Date: 2022
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