The Research On The Openess, The Market Access And The Wage Inequality In China

Since the reform and opening up, China’s economic construction has made remarkable achievements, the total of economic outpt is increasing gradually, the scale of international trade and FDI expand unceasingly, and the living standard has improved remarkably.However, with the high speed growth of economy, the wage inequality has gradually became the main problme in China. Wage is an important component of the income of the residents’livelihood, the problem of wage inequality can be solved or not, it will directly effect economic development, and even make an influence on the construction of harmoinous society in an all-around way.Based on this background, focusing on the visual angle of open economy and new economic geography, the paper examines the currently transformation trend of wage inequality and establishes the empirical model which based on the NEG wage equation.Then, the paper explores the link between China wage inequality and some independent variables, which include degree of import&exprort trade dependency, degree of foreign capital dependency and market access, ect from the perspective of worker wage inequality and domestic-funded enterprises wage inequality by using the panel data of30provinces in China for the period from1995to2009.At the worker wage inequality level, the findings show that the transformation trend of total level of worker wage inequality and three maijor regions’woker wage inequality show "inverted V" pattern, including the eastern region of the woker wage inequality and regional woker wage inequality are the main source of overall worker wage inequality.In addition, the empirical analysis of national sample show that each variable has produced some subtle changes after China’s accession to the WTO.At the same time, the empirical analysis of regional samples show that degree of import&exprort trade dependency, degree of foreign capital dependency and market access have an important effect on wage inequality. At the domestic-funded enterprises wage inequality level, the transformation trend of domestic-funded enterprises wage inequality is different from worker wage inequality, and show "inverted W" pattern. Moreover, the findings show that degree of import&exprort trade dependency, degree of foreign capital dependency and market access play an important impact on the domestic-funded enterprises wage inequality as well.The empirical analysis of cross term of labor force turnover and market access shows that labor force imgration will be conducive to narrowing the market access gap across regions, and to narrowing the domestic-funded enterprises wage gap. Finally, the paper makes correspoding policy recommendations according to the empirical analysis.