Intelligent Development and Human Capital Misallocation: A Regional Perspective

The present study demonstrates that intelligent development can effectively mitigate the issue of human capital misallocation, particularly by enhancing the intelligent conditions. This effect is more pronounced in economically underdeveloped regions and cities. The observed improvement can be attributed to two distinct pathways: the first entails a cascade effect of intelligent development leading to augmented average income, heightened human capital mobility, and ultimately, reduced human capital misallocation. The second pathway involves intelligent development inducing a widening income disparity, followed by increased human capital mobility and ultimately, mitigated human capital misallocation. Notably, geographically proximate regions are susceptible to the deleterious ramifications of intelligent development, particularly exacerbated human capital misallocation. Conversely, regions with comparable economic development levels can capitalize on the benefits of mitigating human capital misallocation arising from intelligent development. In light of these findings, we propose the following recommendations.