Understanding jobs-housing imbalance in urban China: A case study of Shanghai

Weiye Xiao

Department of Geography, University of Utah

Dennis Wei

Department of Geography, University of Utah, and Department of Land Management, Zhejiang University

Han Li

Department of Geography and Regional Studies, University of Miami

DOI: https://doi.org/10.5198/jtlu.2021.1805

Keywords: urbanization; jobs-housing imbalance; spatial mismatch index; spatial inequality; Shanghai; China


Abstract

Shanghai has experienced a rapid process of urbanization and urban expansion, which increases travel costs and limits job accessibility for the economically disadvantaged population. This paper investigates the jobs-housing imbalance problem in Shanghai at the subdistrict-level (census-level) and reaches the following conclusions. First, the jobs-housing imbalance shows a ring pattern and is evident mainly in the suburban areas and periphery of the Shanghai metropolitan area because job opportunities are highly concentrated while residential areas are sprawling. Second, structural factors such as high housing prices and sprawling development significantly contribute to the jobs-housing imbalance. Third, regional planning policies such as development zones contribute to jobs-housing imbalance due to the specialized industrial structure and limited availability of housing. However, geographically weighted regression reveals the development zones in the traditional Pudong district are exceptional insofar as government policy has created spatial heterogeneity there. In addition, the multilevel model used in this study suggests regions with jobs-housing imbalance usually have well-connected streets, and this represents the local government’s efforts to reduce excessive commuting times created by jobs-housing imbalance.

 

 


Author Biography

Weiye Xiao, Department of Geography, University of Utah

Ph.D. Candidate


References

Aguilera, A. (2005). Growth in commuting distances in French polycentric metropolitan areas: Paris, Lyon and Marseille. Urban Studies, 42(9), 1537–1547.

Anas, A., Arnott, R., & Small, K. A. (1998). Urban spatial structure. Journal of Economic Literature, 36(3), 1426–1464.

Bae, C. H. C., & Jun, M. J. (2003). Counterfactual planning: What if there had been no greenbelt in Seoul? Journal of Planning Education and Research, 22(4), 374–383.

Bai, X., Shi, P., & Liu, Y. (2014). Society: Realizing China's urban dream. Nature News, 509(7499), 158.

Campbell, H. E., Kim, Y., & Eckerd, A. (2014). Local zoning and environmental justice: An agent-based model analysis. Urban Affairs Review, 50(4), 521–552.

Cartier, C. (2001). ‘Zone fever,’ the arable land debate, and real estate speculation: China's evolving land use regime and its geographical contradictions. Journal of Contemporary China, 10(28), 445469.

Cervero, R. (1989). Jobs-housing balancing and regional mobility. Journal of the American Planning Association, 55(2), 136–150.

Cervero, R. (2007). Transit-oriented development's ridership bonus: a product of self-selection and public policies. Environment and planning A, 39(9), 2068-2085.

Cervero, R., & Day, J. (2008). Suburbanization and transit-oriented development in China. Transport Policy, 15(5), 315–323.

Day, J., & Cervero, R. (2010). Effects of residential relocation on household and commuting expenditures in Shanghai, China. International Journal of Urban and Regional Research, 34(4), 762–788.

Ewing, R., Hamidi, S., Grace, J. B., & Wei, Y. D. (2016). Does urban sprawl hold down upward mobility? Landscape and Urban Planning, 148, 80–88.

Fan, Y., Allen, R., & Sun, T. (2014). Spatial mismatch in Beijing, China: Implications of job accessibility for Chinese low-wage workers. Habitat International, 44, 202–210.

Feng, W., Zuo, X., & Ruan, D. (2002). Rural migrants in shanghai: Living under the shadow of socialism. International Migration Review, 36(2), 520–545.

Fotheringham, A. S., Batty, M., & Longley, P. A. (1989, December). Diffusion-limited aggregation and the fractal nature of urban growth. Papers of the Regional Science Association, 67(1), 55–69.

Fotheringham, A. S., Brunsdon, C., & Charlton, M. E. (2002). Geographically weighted regression: The analysis of spatially varying relationships. New York: John Wiley.

Gao, B., Liu, W., & Dunford, M. (2014). State land policy, land markets and geographies of manufacturing: The case of Beijing, China. Land Use Policy, 36, 1–12.

Giuliano, G. (1991). Is jobs-housing balance a transportation issue? Berkeley, CA: University of California Transportation Center, University of California.

Giuliano, G., & Small, K. A. (1993). Is the journey to work explained by urban structure? Urban Studies, 30(9), 1485–1500.

Glaeser, E. L., Kahn, M. E., & Rappapo, J. (2008). Why do the poor live in cities? The role of public transportation. Journal of Urban Economics, 63(1), 1–24.

Gobillon, L., Selod, H., & Zenou, Y. (2007). The mechanisms of spatial mismatch. Urban Studies, 44(12), 2401–2427.

Gordon, P., & Richardson, H. (1989). The influence of metropolitan spatial structure on commuting time. Journal of Urban Economics, 26(2), 138–151.

Gordon, P., & Richardson, H. (1997). Are compact cities a desirable planning goal? Journal of the American Planning Association, 63, 95–106.

Gu, C., & Shen, J. (2003). Transformation of urban socio-spatial structure in socialist market economies: The case of Beijing. Habitat International, 27, 107–122.

Han, H., Yang, C., Wang, E., Song, J., & Zhang, M. (2015). Evolution of jobs-housing spatial relationship in Beijing metropolitan area: A job accessibility perspective. Chinese Geographical Science, 25(3), 375–388.

He, C., Huang, Z., & Wang, R. (2014). Land use change and economic growth in urban China: A structural equation analysis. Urban Studies, 51(13), 2880–2898.

He, Q., Zeng, C., Xie, P., Tan, S., & Wu, J. (2019). Comparison of urban growth patterns and changes between three urban agglomerations in China and three metropolises in the USA from 1995 to 2015. Sustainable Cities and Society, 50, 101649.

Horner, M., & Murray, A. (2003). A multi-objective approach to improving regional jobs-housing balance. Regional Studies, 37(2), 135–146.

Hu, L., Fan, Y., & Sun, T. (2017). Spatial or socioeconomic inequality? Job accessibility changes for low-and high-education population in Beijing, China. Cities, 66, 23-33.

Huang, H., & Wei, Y. D. (2016). Spatial inequality of foreign direct investment in China: Institutional change, agglomeration economies, and market access. Applied Geography, 69, 99–111.

Ihlanfeldt, K. R., & Sjoquist, D. L. (1998). The spatial mismatch hypothesis: A review of recent studies and their implications for welfare reform. Housing Policy Debate, 9(4), 849–892.

Kain, J. F. (1992). The spatial mismatch hypothesis: Three decades later. Housing Policy Debate, 3(2), 371–460.

Kim, C., Sang, S., Chun, Y., & Lee, W. (2012). Exploring urban commuting imbalance by jobs and gender. Applied Geography, 32, 532–545.

Li, H., Wei, Y. H. D., & Huang, Z. (2014). Urban land expansion and spatial dynamics in globalizing shanghai. Sustainability, 6(12), 8856–8875.

Li, H., Wei, Y. D., Wu, Y., & Tian, G. (2019a). Analyzing housing prices in shanghai with open data: Amenity, accessibility and urban structure. Cities, 91, 165–179.

Li, H., Wei, Y. D., & Wu, Y. (2019b). Analyzing the private rental housing market in Shanghai with open data. Land Use Policy, 85, 271–284.

Li, H., Wei, Y. D., & Wu, Y. (2019c). Urban amenity, human capital and employment distribution in Shanghai. Habitat International, 91, 102025.

Li, L., Lin, J., Li, X., & Wu, F. (2014). Redevelopment of urban village in China–A step towards an effective urban policy? A case study of Liede village in Guangzhou. Habitat International, 43, 299–308.

Li, S. M., & Huang, Y. (2006). Urban housing in China: Market transition, housing mobility and neighborhood change. Housing Studies, 21(5), 613–623.

Li, S. (2010). Changing residential and employment locations and patterns of commute under hyper growth: The case of Guangzhou, China. Urban Studies, 47(8), 1643–1661.

Li, Z., & Wu, F. (2006). Socio-spatial differentiation and residential inequalities in Shanghai: A case study of three neighborhoods. Housing Studies, 21(5), 695–717.

Lin, G. C., & Wang, C. (2009). Technological innovation in China's high-tech sector: Insights from a 2008 survey of the integrated circuit design industry in Shanghai. Eurasian Geography and Economics, 50(4), 402–424.

Liang, Z., & Ma, Z. (2004). China's floating population: New evidence from the 2000 census. Population and Development Review, 30(3), 467–488.

Liu, Y., Dijst, M., & Geertman, S. (2014). Residential segregation and well-being inequality between local and migrant elderly in Shanghai. Habitat International, 42, 175-185.

Liu, Y., Fang, F., & Li, Y. (2014). Key issues of land use in China and implications for policy making. Land Use Policy, 40, 6–12.

Liu, X., & Wang, M. (2016). How polycentric is urban China and why? A case study of 318 cities. Landscape and Urban Planning, 151, 10–20.

Lobyaem, S. (2006). The effectiveness of jobs-housing balance as a strategy for reducing traffic congestion: A study of metropolitan Bangkok (Doctoral dissertation Texas A&M University, College Station, TX).

Loo, B. P., & Chow, A. S. (2011). Jobs-housing balance in an era of population decentralization: An analytical framework and a case study. Journal of Transport Geography, 19(4), 552–562.

Ma, K. R., & Banister, D. (2007). Urban spatial change and excess commuting. Environment and Planning A, 39(3), 630–646.

Olds, K., & Yeung, H. (2004). Pathways to global city formation: A view from the developmental city-state of Singapore. Review of International Political Economy, 11(3), 489–521.

Ong, P. M., & Miller, D. (2005). Spatial and transportation mismatch in Los Angeles. Journal of Planning Education and Research, 25(1), 43–56.

Pan, H., Shen, Q., & Zhang, M. (2009). Influence of urban form on travel behavior in four neighborhoods of Shanghai. Urban Studies, 46(2), 275–294.

Peng, Z. R. (1997). The jobs-housing balance and urban commuting. Urban Studies, 34(8), 1215–1235.

Qin, P., & Wang, L. (2017). Job opportunities, institutions, and the jobs-housing spatial relationship: Case study of Beijing. Transport Policy, 81, 331–339.

Qi, Y., Fan, Y., Sun, T., & Hu, L. (2018). Decade-long changes in spatial mismatch in Beijing, China: Are disadvantaged populations better or worse off? Environment and Planning A: Economy and Space, 50(4), 848–868.

Saadi, I., Boussauw, K., Teller, J., & Cools, M. (2016). Trends in regional jobs-housing proximity based on the minimum commute: The case of Belgium. Journal of Transport Geography, 57, 171–183.

SCCTPI – Shanghai Comprehensive City Transportation Planning Institute. (2005). Shanghai Comprehensive Transportation Plan, Shanghai, China (in Chinese). Shanghai: SCCTPI.

Shen, G. (2002). Fractal dimension and fractal growth of urbanized areas. International Journal of Geographical Information Science, 16(5), 419–437.

SSB (Shanghai Statistical Bureau) (2014). Shanghai statistical yearbook. Retrieved from http://www.stats-sh.gov.cn/tjnj/zgsh/nj2011.html#

SSB (Shanghai Statistical Bureau) (2019). Shanghai statistical yearbook. Retrieved from http://www.stats.gov.cn/tjsj/ndsj/2019/indexeh.htm

Stoll, M. A. (2005). Job sprawl and the spatial mismatch between blacks and jobs. Washington, DC: Brookings Institution Metropolitan Policy Program.

Stoll, M. A., & Covington, K. (2012). Explaining racial/ethnic gaps in spatial mismatch in the US: The primacy of racial segregation. Urban Studies, 49(11), 2501–2521.

Sun, B., Ermagun, A., & Dan, B. (2017). Built environmental impacts on commuting mode choice and distance: Evidence from Shanghai. Transportation Research Part D: Transport and Environment, 52, 441–453.

Sun, W., Zheng, S., Geltner, D. M., & Wang, R. (2017). The housing market effects of local home purchase restrictions: Evidence from Beijing. The Journal of Real Estate Finance and Economics, 55(3), 288–312.

Suzuki, T., & Lee, S. (2012). Jobs–housing imbalance, spatial correlation, and excess commuting. Transportation Research Part A: Policy and Practice, 46(2), 322–336.

Tian, G., Wei, Y. D., & Li, H. (2017). Effects of accessibility and environmental health risk on housing prices: A case of Salt Lake County, Utah. Applied Geography, 89, 12–21.

Wang, D., & Chai, Y. (2009). The jobs–housing relationship and commuting in Beijing, China: The legacy of Danwei. Journal of Transport Geography, 17(1), 30–38.

Wang, E., Song, J., & Xu, T. (2011). From “spatial bond” to “spatial mismatch”: An assessment of changing jobs–housing relationship in Beijing. Habitat International, 35(2), 398–409.

Wang Y. P., & Murie, A. (1996). The process of commercialisation of urban housing in China. Urban Studies, 33(6), 971–989.

Wen, H., & Goodman, A. C. (2013). Relationship between urban land price and housing price: Evidence from 21 provincial capitals in China. Habitat International, 40, 9–17.

Wen, H., & Tao, Y. (2015). Polycentric urban structure and housing price in the transitional China: Evidence from Hangzhou. Habitat International, 46, 138–146.

Wen, H., Xiao, Y., & Zhang, L. (2017). School district, education quality, and housing price: Evidence from a natural experiment in Hangzhou, China. Cities, 66, 72–80.

Wei, Y. H. D., Bi, X., Wang, M., & Ning, Y. (2016). Globalization, economic restructuring, and locational trajectories of software firms in shanghai. The Professional Geographer, 68(2), 211–226.

Wei, Y. H. D., & Leung, C. K. (2005). Development zones, foreign investment, and global city formation in Shanghai. Growth and Change, 36(1), 16–40.

Wong, S. W., & Tang, B. S. (2005). Challenges to the sustainability of ‘development zones’: A case study of Guangzhou Development District, China. Cities, 22(4), 303–316.

Wu, F., & Logan, J. (2016). Do rural migrants ‘float’ in urban China? Neighboring and neighborhood sentiment in Beijing. Urban Studies, 53(14), 2973–2990.

Xu, Y., Chan, E. H., & Yung, E. H. (2013). Analysis of the mechanisms contributing to spatial mismatch in transitional Chinese cities. Journal of Urban Planning and Development, 140(2), 04013011.

Yang, J., & Ferreira, J. (2005). Evaluating measures of jobs-housing proximity. In D. M. Levinson & K. J. Krizek (Eds.), Access to destinations (pp. 171–192). Amsterdam: Elsevier.

Yang, X., Day, J. E., Langford, B. C., Cherry, C. R., Jones, L. R., Han, S. S., & Sun, J. (2017). Commute responses to employment decentralization: Anticipated versus actual mode choice behaviors of new town employees in Kunming, China. Transportation Research Part D: Transport and Environment, 52, 454–470.

Ye, C., Chen, M., Chen, R., & Guo, Z. (2014). Multi-scalar separations: Land use and production of space in Xianlin, a university town in Nanjing, China. Habitat International, 42, 264–272.

You, Z., Yang, H., & Fu, M. (2018). Settlement intention characteristics and determinants in floating populations in Chinese border cities. Sustainable Cities and Society, 39, 476–486.

Yuan, F., Wei, Y., Chen, W., & Jin, Z. (2010). Spatial agglomeration and new firm formation in the information and communication technology industry in Suzhou. Acta Geographica Sinica, 65(2), 153–163.

Yue, W., Fan, P., Wei, Y. H. D., & Qi, J. (2014). Economic development, urban expansion, and sustainable development in Shanghai. Stochastic Environmental Research and Risk Assessment, 28(4), 783–799.

Zandiatashbar, A., Hamidi, S., & Foster, N. (2019). High-tech business location, transportation accessibility, and implications for sustainability: Evaluating the differences between high-tech specializations using empirical evidence from US booming regions. Sustainable Cities and Society, 50, 101648.

Zhou, J., Wang, Y., Cao, G., & Wang, S. (2017). Jobs-housing balance and development zones in China: A case study of Suzhou Industry Park. Urban Geography, 38(3), 363–380.

Zhou, J., Chun, Z., Xiaojian, C., Wei, H., & Peng, Y. (2014). Has the legacy of Danwei persisted in transformations? The jobs-housing balance and commuting efficiency in Xi’an. Journal of Transport Geography, 40, 64–76.

Zhou, S., Liu, Y., & Kwan, M. P. (2016). Spatial mismatch in post-reform urban China: A case study of a relocated state-owned enterprise in Guangzhou. Habitat International, 58, 1–11.

Zhou, X., Chen, X., & Zhang, T. (2016). Impact of megacity jobs-housing spatial mismatch on commuting behaviors: A case study on central districts of Shanghai, China. Sustainability, 8(2), 122.

Zhou, X., & Yeh, A. G. (2020). Understanding the modifiable areal unit problem and identifying appropriate spatial unit in jobs–housing balance and employment self-containment using big data. Transportation. https://doi.org/10.1007/s11116-020-10094-z