Social & Education Policy

Negative human capital externalities in well-being: evidence from Chinese cities

Guo, Q.; Qian, H.
Mar-06-2021

Abstract

This article examines the impact of the concentration of human capital on individual happiness in Chinese cities. In contrast to findings in the literature based on the US context, we report lower individual happiness for residents living in cities with higher levels of human capital. A further investigation shows that the housing price underpins such negative human capital externalities in well-being. The results are robust to different model specifications. While human capital is often considered the key factor for the economic success of cities, this research informs subnational policy-makers of the potential negative consequence of attracting talent and possible solutions.

Citation

Guo Q, Qian H. Negative human capital externalities in well-being: evidence from Chinese cities. 2021;55(6):1046 - 1058. doi:10.1080/00343404.2020.1861237.