Emerging Industries and the Regrowth of Shrinking Cities—— An Analysis Based on Local Labor Markets

The persistent urban shrinkage is a global challenge,but in China,some shrinking cities have experienced a significant rebound in population.This paper aims to explore the reasons behind the population rebound in shrinking cities in China.Emerging industries serve as the new engine of economic development.Compared to traditional industries,the development of emerging industries is less constrained by previous development conditions.For shrinking cities experiencing continuous population outflow,emerging industries may bring new development prospects and inject fresh vitality into the market.Therefore,based on 88 shrinking cities in China,this paper discusses the role of emerging industries in the population rebound of shrinking cities.The study finds that the development of emerging industries has a significant positive impact on the labor market of shrinking cities.Specifically,it promotes urban population growth,increases employment,and raises wages.With a series of robustness checks,the above conclusion still holds.Mechanism analysis indicates that the driving force of emerging industries on the upstream and downstream traditional industries is an important channel for promoting the prosperity of the local labor market.This research provides empirical evidence for understanding the transformation of shrinking cities and the role of emerging industries.