Abstract: This paper investigates the patterns and determinants of human capital distribution across cities in China. Using the population census data in 2010, we firstly discover the facts that the number of high skilled labourer decreases with the distance to the three major seaports. The growth of high skilled workers has the similar patterns. Secondly, we review and study the determinants of location choices in terms of economic facts, non-economic facts and moving costs. We use the location choice behavior of graduate students to study the role of non-institutional moving costs. The results based on the Conditional Logit Model shows that the graduates are more likely to work in cities near their hometown provinces and the cities where the graduate schools locate. The PHD graduates have higher elasticity to distance. The above conclusions give strong policy implication for the local governments.

Key words: human capital, housing price, public service, moving cost, distance, conditional logit model