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A strong labor market institutional environment, encompassing social and labor contracts, drives labor agglomeration and attracts skilled talent. This study confirms that improving labor rights and dispute resolution fosters economic development.

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labor agglomerationlabor disputenew economic geography theoryprofessional and technical talentsspatial durbin model

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Area of Science:

  • Economics
  • Labor Economics
  • Regional Science

Background:

  • The institutional environment significantly influences economic development and labor market dynamics.
  • Labor agglomeration is a key phenomenon influenced by institutional factors.
  • Existing research often overlooks the specific role of the labor market's institutional framework.

Purpose of the Study:

  • To analyze the impact of the labor market's institutional environment on labor agglomeration.
  • To investigate the role of social contract and labor contract environments in shaping labor markets.
  • To examine how technological progress influences the agglomeration of highly-skilled talent.

Main Methods:

  • Theoretical analysis of institutional impacts on labor markets.
  • Empirical analysis using provincial panel data from 2001-2017.
  • Application of the dynamic spatial Durbin model to assess spatial effects.

Main Results:

  • A positive institutional environment in the labor market promotes labor agglomeration.
  • Technological progress is a significant driver for the agglomeration of highly-skilled talent.
  • The study identified key institutional factors influencing labor market dynamics and talent attraction.

Conclusions:

  • Enhancing the labor market's institutional environment is crucial for economic development and labor agglomeration.
  • Policy recommendations focus on improving labor dispute settlement and strengthening labor rights protection.
  • Sustained efforts to improve the regional labor market institutional environment are essential.