Intelligent Development and Human Capital Misallocation: Evidence and Policy Implications

The present study reveals that intelligent development can effectively mitigate the issue of human capital misallocation, particularly by improving the intelligent conditions. This effect is more prominent in regions and cities that are economically underdeveloped. There are two pathways through which this improvement can occur: the first involves a chain reaction whereby intelligent development leads to higher average income, increased human capital mobility, and ultimately, alleviated human capital misallocation. The second pathway involves intelligent development leading to a widening income gap, followed by increased human capital mobility and ultimately, alleviated human capital misallocation. Geographically proximate regions are susceptible to the negative consequences of intelligent development, specifically exacerbated human capital misallocation. Conversely, regions with equivalent economic development levels can reap the benefits of mitigating human capital misallocation resulting from intelligent development. Based on these findings, we recommend the following measures.