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Urban scale and wage premium

Evidence from China

Bibliographic Data

ID12549849
AuthorsShuhong Peng (0000-0002-9331-2913, Jiangxi University of Finance and Economics, corresponding author)
Year2019
Volume24
Issue3
Pages468-480
Publication date2019-06-05
Open AccessNo
TypeARTICLE
VenueJournal of the Asia Pacific Economy (JOURNAL)
Journal identifiersISSN: 1354-7860 • E-ISSN: 1469-9648
PublisherRoutledge (PUBLISHER • GB)
DOI10.1080/13547860.2019.1624335
OpenAlexW2954888562
LanguageEN
Citations received1
References cited9

Using the data of the China General Social Survey (CGSS) in 2010, the sixth national census in 2010 and the fifth national census in 2000, this paper examines the urban scale’s impact on workers’ wages by employing instrumental variables method. The study shows that China's large cities with 1–5 million population and megalopolis over 5 million population have significant urban scale wage premium. The living cost difference and agglomeration economy are the main causes of the megalopolis and large cities’ wage premium respectively. The high and low skilled workers both benefit from the expansion of urban scale. Policy implications of research findings are that moderate scale cities should be the main direction of Chinese urbanization; big cities should not only absorb high skilled labor, but also be inclusive for low skilled labor; migrant workers' urbanization is conducive to the prosperity of the city

Census · China · Demographic economics · Economic geography · Economic growth · Economics · Economies of agglomeration · Geography · Labour economics · Megalopolis · Population · Prosperity · Scale (ratio · Sociology · Urbanization · Wage · Demography · Fiscal Policy and Economic Growth · Regional Economic and Spatial Analysis · Regional Economics and Spatial Analysis

  • Wages, house prices and industry composition

    Wang Jing, Jing Wang et al.•Journal of the Asia Pacific Economy•2019

  • Cities and Skills

    Edward L Glaeser, David C Maré•Journal of Labor Economics•2001

  • The Magnitude and Causes of Agglomeration Economies

    Open Access•Diego Puga•Journal of Regional Science•2010

  • The Productivity Advantages of Large Cities

    Open Access•Pierre‐Philippe Combes, Gilles Duranton et al.•Econometrica•2012

  • Why do cities pay more? An empirical examination of some competing theories of the urban wage premium

    Open Access•Jeffrey J Yankow•Journal of Urban Economics•2006

  • Spatial wage disparities

    Open Access•Pierre-Philippe Combes, Pierre‐Philippe Combes et al.•Journal of Urban Economics•2008

  • Marshall's scale economies

    Open Access•J Vernon Henderson•Journal of Urban Economics•2003

Citations per year0.14
Citation span2019 - 2019 (1)
Highly citedNo

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