A Study Of The Impact Of Financial Agglomeration On Regional Wages Level

The issue of wage growth has always been an important issue of concern to all sectors of society.Since the reform and opening up,the wage level of Chinese residents has risen sharply.However,the pace of regional growth has not been coordinated.This paper starts with the financial agglomeration with the dual attributes of "industry" and "space",builds the theoretical analysis framework of the intrinsic connection between financial agglomeration and regional wage level,focusing on the analysis of the wage-level increase effect and spatial spillover effect of financial agglomeration,and uses the empirical data of Chinese prefecture-level cities to test the research focus,which provides a new development idea for the classic space economy problem of wage income.Finally,based on the empirical results,it provides policy suggestions for the government and production decision makers on how to exert the economic effect of financial agglomeration.Firstly,this paper puts the financial agglomeration,spatial spillover effect and regional wage levels into the same theoretical framework.We put forward that financial agglomeration can improve the wage of workers in financial industry through labor pool effect,intermediate input share and knowledge spillover effect and promote the production efficiency of other industries through economies of scale effect,resource allocation effect,risk diversification function and network economic effect,so as to enhance the regional wage level.As well,financial agglomeration can promote the increase of wages in the relevant areas through the spillover effect.Then,this paper analyses the level of financial agglomeration and regional wage in China respectively.The results show that:(1)From a time series point of view,the level of financial agglomeration in China's cities shows a trend of first decreasing and then increasing.The level of financial agglomeration in the eastern region has been higher than the national average,which has obvious effect on promoting the national level of financial agglomeration.(2)The wage levels of the three major regions all show substantial growth.The wage levels in the eastern region are higher than those in the central and western regions,while the average wage levels in the central and western regions are below the national average.Finally,based on the panel data of 266 prefecture-level cities in China from 2003 to 2015,the fixed-effects model and the spatial econometric model are used to analyze the empirical results.The results show that:(1)Financial agglomeration can effectively raise the regional wage level;(2)Based on the geographic distance weight matrix,wage in China shows obvious agglomeration in spatial distribution.Financial agglomeration will not only raise the wages of the city,but will also have a significant positive effect on the wage levels of the cities concerned through spillover effect.