A Comprehensive Analysis of the Factors Influencing Regional Wage Level Differences in China

Yuming Li

doi:10.54097/ehss.v4i.2714

Authors

Yuming Li

DOI:

https://doi.org/10.54097/ehss.v4i.2714

Keywords:

Wage level; Gini coefficient decomposition; Markov chain analysis

Abstract

Based on the data of China Urban Statistical Yearbook (2019-2021), this paper analyzes the effects of economic development, science and technology innovation, higher education, openness, and the role of government on regional wage differences in China based on the theoretical basis of urban economics. The paper uses instrumental variables estimation, Zou test, Gini coefficient decomposition, factor analysis, Markov chain and other methods to draw a preliminary conclusion that all factors except openness have a significant positive effect on wage level, while openness does not have a significant effect. This paper gives suggestions based on the mechanism of influence, pointing out the important role of local government support in raising the wage level.

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