Efficient Allocation of Heterogeneous Skilled Labor and Balanced Urban System Development in China

Under the new development pattern, the efficient allocation of heterogeneous skilled labor between and within cities is an important factor affecting the balanced distribution and scale structure of urban systems. Based on the equilibrium framework of the urban model established by Behrens et al., this paper explores the theoretical logic and mechanisms of labor mobility, labor skill matching, and urban productivity in achieving balanced distribution and scale structure of urban systems. On this basis, using data from 287 prefecture-level cities in China from 2010 to 2019, empirical tests and heterogeneity analysis were conducted. The results show that the balanced distribution structure of urban systems depends on the distribution structure of different skilled labor, while the balanced scale structure of urban systems depends on the spatial agglomeration of high-skilled labor, the rational allocation of productivity, and the quality of labor skill matching. It also depends on the balance between urban agglomeration factors and urban cost factors. Based on these findings, policy recommendations are proposed to optimize the distribution structure of China's urban systems, the scale structure of urban systems, and the labor market supply: develop a strategy for balanced urban development, with a focus on the distribution structure of skilled labor in cities; continue to improve the scale of cities, especially optimizing the public supply in large cities; enhance the capacity of medium and small cities to absorb heterogeneous skilled labor; deepen labor market reforms, improve the level of labor supply, and enhance skill matching quality and efficiency.