Does Human Capital Agglomeration Increase Firm Productivity?
DOI:
https://doi.org/10.54097/3m9zb469Keywords:
Human capital, Productive efficiency, Knowledge spillovers, Market liberalizationAbstract
Human capital has become one of the most important indicators of a country's overall strength and development process in recent years. Based on the samples of listed companies from 2006 to 2020, this paper uses a fixed-effects model to explore the impact and mechanism of human capital agglomeration on firms' productivity. The study results show that human capital agglomeration significantly enhances the productivity of firms, i.e., the higher the level of human capital agglomeration in the city, the higher the productivity of firms. After the robustness test, the research conclusions are reliable. The mechanism shows that knowledge spillover and technological innovation, skill matching, and specialized production are the mechanisms through which human capital affects firms' productivity. Heterogeneity analysis shows regional, enterprise, and industry heterogeneity in the impact of human capital agglomeration on the productivity of firms. Accordingly, this paper provides exploratory suggestions on maximizing the positive effects of human capital agglomeration on firms' productive activities.
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