Research On The Influence Of Urban Agglomeration On Regional Wages

After the reform and opening up,China's urbanization process has accelerated,Owing to their superior geographical location and favorable policy conditions,large and medium-sized cities have diversified labor resources to promote regional output growth particularly.The increase in the productivity of urban labor production lead to an increase in the nominal wages of workers in major cities in China.This paper mainly according to the new economic geography,microeconomics and Marshall's theory of agglomeration to analyse.By constructing a theoretical model of the influence of urban agglomeration on the regional wage level,the paper empirically tests China major cities' statistical data from 2006 to 2015,and analyses the Influence of Urban Agglomeration on the Regional Wage Level.According to the analysis of this paper,there is a significant positive correlation between the level of agglomeration of major cities in China and the level of wages in the region,the negative effects happened in the advanced stage of urban development in developed countries,such as“congestion costs”,doesn't happen in china.On the one hand,China's overall nominal GDP increased from 27,044.4 billion yuan in 2007 to 74,045.8 billion yuan in 2016,increased by173.44%.On the other hand,nominal wages in major cities in China continue to rise,and the average annual nominal salaries of Chinese urban units' employees rose from 24,721 yuan in2007 to 67,569 yuan in 2016,increased by 173.33%.In the early stages of economic development,as the level of regional agglomeration increases,the output of per unit area will increase,the urban production efficiency will also increase,and the wage level will increase accordingly.In addition,the increase in wages will also be influenced by agglomeration spillover effects such as technological progress,human capital,foreign direct investment,and government public finance spending.Through measurement,it is found that as the level of urban agglomeration increases,the nominal wage of workers in the region will also increase,which is in line with theoretical expectations.Other variables such as human capital,government's public financial expenditure will also affect the workers' names in different degrees.However,the changes in the level of urban wages cited by foreign direct investment factors,whether considered the whole or differentregions,have a negative inhibitory effect on the wage level of workers,which is consistent with the opinions of a few scholars,indicating that the multinational corporations' production activities in China may not necessarily promote the growth of wages in the region.The innovation of this paper take China's major cities as the research object,and measure the degree of agglomeration of major cities in China,which has a certain reference role in estimating the level of urbanization in the country.Through empirical analysis,the correctness of the theory of the impact of urban agglomeration on regional wage levels is further examined.