Industrial Agglomeration and Regional Wage Gap——Spatial Econometric Analysis Based on Chinese Urban Data
Cheng Zhong-hu
Abstract
Cheng Zhong-hu
Abstract
This paper analyzes the spillovers effect of industrial agglomeration on regional wage level by using the statistical data of 285 cities that are prefecture-level and above from 2003 to 2012 based on new economic geography and urban economics. The research conclusion indicates that the spatial correlation of the average wage of Chinese urban workers has a volatile increasing trend. The effect of manufacturing agglomeration on regional wage level is significantly negative. The agglomeration of producer service industry and the common agglomeration of manufacturing and producer service are conductive to the rise of regional wage level. Seen from the perspective of agglomeration externality effect,MAR externality and Porter externality inhibit the rise of regional wage level and Jacobs externality is conductive to the rise of the regional wage level.
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This paper analyzes the spillovers effect of industrial agglomeration on regional wage level by using the statistical data of 285 cities that are prefecture-level and above from 2003 to 2012 based on new economic geography and urban economics. The research conclusion indicates that the spatial correlation of the average wage of Chinese urban workers has a volatile increasing trend. The effect of manufacturing agglomeration on regional wage level is significantly negative. The agglomeration of producer service industry and the common agglomeration of manufacturing and producer service are conductive to the rise of regional wage level. Seen from the perspective of agglomeration externality effect,MAR externality and Porter externality inhibit the rise of regional wage level and Jacobs externality is conductive to the rise of the regional wage level.
Key concepts: Economies of agglomeration, Externality, Wage, Economic geography, Economics, Econometric analysis, Tertiary sector of the economy, Labour economics