Trade Liberalisation And Urban Wage Premium

Since the reform and opening up,China has actively implemented the basic national policy of opening to the outside world,and has made tremendous economic achievements.Trade liberalization in various cities has steadily increased.As of the end of 2018,the urbanization rate of my country’s permanent population has reached 59.58%,and the size of the city and the total economic volume are constantly increasing.These will inevitably have an impact on the wage income of urban workers in my country.The increase in the degree of trade liberalization will open up a diversified job market by influencing the choice of laborers by enterprises and the position of import and export enterprises in different industries,increasing the probability of individual formal and informal employment,and enabling various skills Labor force maximizes its own benefits;at the same time,trade liberalization also promotes the improvement of workers’ skills to increase income;while trade liberalization opens up rich commodity markets,it also promotes the flow and accumulation of factors,which is also an important condition for urban industrial agglomeration.Thus,it can be seen that both trade liberalization and industrial agglomeration will work together to promote the improvement of laborers’ wages and incomes.The size of the city is divided according to the degree of population agglomeration.While exerting the effect of agglomeration,the city also raises the urban wage premium through the compensation mechanism and the selection of effect channels.However,there are differences in the transmission of trade liberalization in different cities.Flow paths work together to distribute labor income.Based on the above theoretical analysis,this paper first uses the 2002-2013 CHIP survey data for basic descriptive analysis of income,trade liberalization,and the size of the city where the sample is located.It is found that the effect of trade liberalization on wage income is relatively stable and large.Compared with small and medium-sized cities,the wage premium effect is obvious in cities.On this basis,using 2013 CHIP and two-stage least squares,empirical analysis of the size of the city where the worker is located,the degree of trade liberalization,the personal income of the worker,and the corresponding relationship between the two and the corresponding income,and on the basis of mechanism verification Method robustness test,and then consider regional heterogeneity,urban heterogeneity,labor heterogeneity and further analysis of different income levels.The study found that: the degree of trade liberalization has a significant effect on increasing wage income;the effect of trade liberalization on increasing wage income weakens as the size of cities expands.Compared with large cities,the degree of trade liberalization in medium-sized cities can be obtained Higher wage premium;the enlargement of the city scale can significantly increase the wage income of workers.Moreover,there are regional differences in trade liberalization and the wage premium effect of city scale.Trade liberalization and the expansion of city scale in the eastern region can significantly promote the increase of wage income.Non-state-owned enterprises and service industries often have higher wage premiums.The policy implications of this article are: In view of the significant role of trade liberalization in raising workers ’wages and incomes,my country should further expand the breadth and depth of trade liberalization.At the city level,the development of medium-sized cities should be encouraged,high housing prices in large cities should be suppressed,and various measures should be taken to help the floating population of large cities to truly realize citizenization,so that my country can form a multi-central complementary urban network system.At the same time,continuing to maintain the vitality of many types of enterprises,adhering to regional coordinated development,and promoting the rise of Chinese enterprises to the high-end stage of the value chain will also be a good strategy to feed back the income of workers.