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Research On The Influence Of City Size On Wage Premium In China

Posted on:2021-01-24Degree:MasterType:Thesis
Country:ChinaCandidate:G ZhengFull Text:PDF
GTID:2427330623977905Subject:Regional Economics
Abstract/Summary:PDF Full Text Request
Since 1978,China's economy has shown good growth momentum,and the labor force from different cities has Shared the development dividend of China's reform and opening up.However,average urban wages was unevenly distributed across the country.In 2017,the average salary in Beijing was more than twice that in yan 'an.Economic data had showed that the wage level of labor force in big cities was generally higher than that in small and medium-sized cities,and the difference of city size would have a premium effect on labor force wage.From the perspective of urban development policies,large cities were more likely to attract highly skilled and educated floating population.However,the agglomeration of population in big cities would also bring negative effects such as environmental pollution and traffic congestion,which would reduce the individual's utility level to some extent.Therefore,it was necessary to analyze the influence of city size on wage premium,and deeply explore the influence process of city size on wage premium.This paper would mainly use the data of 2017 national floating population survey and 2017 China urban statistical yearbook.Firstly,Mincer wage income equation was constructed and OLS method was used to estimate the influence degree of wage premium in different city sizes,and the influence of selection bias was controlled by the Heckman two-stage method.Secondly,empirical test of the city size on the impact of wage premium mechanism.By using the test procedure such as sequential test and the joint test method,this paper analyzed the effects of agglomeration effect,human capital effect and compensation effect of city size on wage premium from the perspective of logarithm of city population size and setting city dummy variable based on classification,so as to determine the transmission path between city size and wage premium.The study found that city size has a significant impact on labor wage premium.Compared with the wages of workers in general cities,the wage premium in big cities,megalopolis and megalopolis increased successively.By examining the influence mechanism of city size on wage premium,it was found that the agglomeration effect,human capital effect and compensation effect brought by the expansion of city size promote the improvement of labor force wage level.The conclusion of this paper would provide reference for the coordinated development of large and small cities.Based on the above research results,this paper proposed the following Suggestions: First of all,in terms of factors of production,it could further relax the household registration restrictions on floating population in big cities,promoted the orderly transfer of floating population,and formed a more efficient and dynamic urban economic system.Secondly,optimized the city's management system.It was suggested to optimize the urban structure and urban management system,improve the urban traffic and living conditions,guide the labor force to spread to the surrounding areas through the short-range economic circle,and gradually improved the fine management level of big cities.Finally,it paid attention to the coordinated development of cities of different sizes and levels.Large cities would continue to give full play to their advantages in economies of scale and scope.Small and medium-sized cities would make use of their comparative advantages in resources and labor to achieve their own economic development and promote coordinated development of cities.
Keywords/Search Tags:City Size, Wage Premium, Influence Mechanism
PDF Full Text Request
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