Market Potential, Analysis Of International Trade On The Wage Gap Between Regions Affected By Evidence

The quantity of national economy sustained high growth makes the per capita disposable continuously improve. But the wage inequality has become more and more prominent. The wage inequality is a normal phenomenon because of the difference of the regions, industries, nature of enterprises and positions. The income is related to people’s livelihood and the quality of the lives. A reasonable wage inequality can motivates the workers to improve efficiency. On the contrary, it’ll intensify the social contradictions with the unreasonable wage inequality become more and more serious.The wage inequality between different regions is a normal phenomenon. Generally speaking, the reason of regional wage inequality is the imbalance of economic development, and the imbalance development is caused by many factors. Based on this background, the paper examines the two major factors, one is the market potential and one is the international trade, which effect regional wage equality by using the panel data of30provinces in China for the period from1997to2012.The research results show that the wage inequality between coastal and inland areas is serious, and this difference between coastal provinces is also obvious.The research results show that different parts of the wage income level are affected by market potential and international trade degree is different.In terms of the sample data, the income is more affected by market potential than foreign trade openness. In terms of regional sample data, the coastal provinces were mainly affected by the potential market, inland area provinces were mainly affected by foreign trade openness. Relatively, areas in the middle reach of Yangtze River, inland area contains region in the middle reaches of the Yellow River, southwest and northwest area are little differences.