Influences of environmental regulations on skill premium: mediating effect of industrial structure optimization

Shu Kedong, Lu Yueyu, Yu Ziyan, Kuai Peng () and Zhang Shu’an ()
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Shu Kedong: School of Economics of Hefei University of Technology
Lu Yueyu: School of Economics of Hefei University of Technology
Yu Ziyan: School of Economics of Hefei University of Technology
Kuai Peng: School of Economics of Hefei University of Technology
Zhang Shu’an: Shanghai Lixin University of Accounting and Finance

Environmental Economics and Policy Studies, 2021, vol. 23, issue 2, No 2, 245-273

Abstract: Abstract Environmental regulation could affect skill premium by affecting the relative supply and demand for skilled labor and non-skilled labor; meanwhile, it could also exert influences on skill premium indirectly by optimizing industrial structure. This essay conducts empirical tests based on the panel data of Chinese cities at prefecture level or above from 2005 to 2016 by analyzing the influence mechanism of environmental regulations on skill premium as well as the intermediate effect of industrial structure. The results show that generally environmental regulation has remarkable promoting effect on skill premium and the industrial structure shows significant positive mediating effect; however, the mediating effect of industrial structure shows regional heterogeneity, which is negative in the eastern and western regions and positive in the central region. The results of the research could provide a theoretical basis and decision-making references for China in reasonable control of skill premium and guaranteeing skilled labors.

Keywords: Environmental regulation; Industrial structure; Skilled labor; Non-skilled labor (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1007/s10018-020-00288-1

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