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

Author: Suqin Ge (Virginia Tech)Naijia Guo (The University of Hong Kong)Zibin Huang (Shanghai University of Finance and Economics)Junsen Zhang (Zhejiang University)Li Zhang (Rockwool Foundation Berlin)
Posted: 2 July 2026

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.
JEL codes: J24, J61, R23
Keywords: Patent, Migration, Spatial equilibrium, Wage, Amenity