Growing without Divergence: The Impact of Innovation on Low- and High-skilled Migration in China

Suqin Ge, Naijia Guo, Zibin Huang, Junsen Zhang and Li Zhang

No 26176, RFBerlin Discussion Paper Series from ROCKWOOL Foundation Berlin (RFBerlin)

Abstract: This paper examines how innovation shapes migration across skill groups. Using Chinese microdata from 2005-2015, we find that cities with faster patent growth attract more low-skilled than high-skilled migrants, opposite to patterns in developed countries. These cities see similar wage growth for both groups but limited amenity gains. We develop and estimate a spatial equilibrium model showing that low-skilled workers prioritize wages, while high-skilled workers value amenities, which rise with the share of skilled workers. Patent shocks draw in more low-skilled workers, reducing amenities and deterring high-skilled migration. Overall, technological growth raised wages and welfare without increasing spatial inequality.

Keywords: Patent; Migration; Spatial equilibrium; Wage; Amenity (search for similar items in EconPapers)
JEL-codes: J24 J61 R23 (search for similar items in EconPapers)
Date: 2026-07
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