How Does Human Capital Matching Influence the Markups of Industrial Firms: Theoretical Mechanism and Empirical Evidence
- WANG Huang,HUANG Xianhai,CHEN Hangyu & ZHANG Qianrong
- Zhejiang University,310027.
This paper incorporates “human capital-industrial structure” matching degree and matching quality into an extended M-O model,demonstrating the mechanism of dynamic change of industrial firms' markups from the perspective of human capital matching. Based on theoretical analysis,an empirical research was conducted with matched data about Chinese cities and individual firms. The results show that: the development of urban human capital lags behind the adjustment of industrial structure,and it is easy to fall into the coupling lock of low quality of human capital,which is not conducive to the innovation and upgrading of high-productivity firms. There is a significant “inverted U-shaped” relationship between the system coupling degree of “human capital-industrial structure” and firm's markups,while there is a significant “U-shaped” relationship between the system coordination degree and markups. Intermediate mechanism test results show that the markups effect generated by coupling degree is mainly through the “wage channel”,while the coordination of dispatch will significantly affect the “innovation behavior” of firms. Further analysis shows that human capital matching can be coordinated with industry skill intensity,matched with industry technology level,combined with the dynamic upgrading of comparative advantage,and complemented with firms' independent upgrading behavior,so that firms can get out of the low-quality coupling lock of “human capital-industrial structure” and increase the markups. It is of great practical significance to exert the spillover effect of human capital quality and technological progress to promote the high-quality development of manufacturing industry.
- Human Capital Matching,Markups,Wage Effect,Innovation Effect,Upgrading of Industrial Structure