How public services affect human capital allocation ——the regulatory effect of digital economy☆

Xing Wang, Chentao Duan and Shulei Zhang

International Review of Economics & Finance, 2025, vol. 100, issue C

Abstract: The pursuit of high-level public services by human capital is an inevitable choice for the free flow of human capital, but the digital economy has updated the relationship between the level of public services and the allocation of human capital. Public services in the form of data become a key factor in promoting the efficient allocation of human capital. This article, based on data from 256 prefecture-level and above cities nationwide from 2003 to 2021, empirically examines the effect of improved public service levels on the allocation of human capital and the moderating role of the digital economy. The study finds: (1) The problem of human capital misallocation is widespread among cities, characterized by insufficient human capital allocation in eastern regions and excessive allocation in central and western regions. (2) The improvement of public service levels serves to increase the allocation of human capital, and the construction of public services is beneficial to enhancing the attractiveness of cities. (3) The moderating effect indicates that the development of the digital economy further strengthens the attractiveness of public services to human capital, with a more significant effect in non-first-tier and non-resource-based cities. The research contributes to a deeper understanding of human capital allocation in the era of the digital economy and provides theoretical basis and policy reference for the current integration of the digital economy and public services as well as the equalization of public services.

Keywords: Public services; Human capital; Digital economy (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:100:y:2025:i:c:s1059056025002655

DOI: 10.1016/j.iref.2025.104102

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