The Impact of Urban Spatial Structure on Workers’ Wages in China: Empirical Analysis Based on Dynamic Panel Data

Abstract

The purpose of this paper is to study the impact of urban spatial structure on the wages of workers in China. Unlike conventional studies that quantify urban scale and urban density, this paper focuses on urban spatial structure and examines urban system indexes that reflect urban spatial features as well as urban sprawl indexes that reflect urban spatial density. In addition, this paper constructs a panel data regression model and a dynamic panel data regression model by using an instrumental variables method and a system generalized moment method, respectively, and then empirically analyzes the association of the urban system and urban sprawl indexes with wages as well as the synergistic effect of urban heterogeneity and urban sprawl on wages. Based on the above research, it is concluded that a decentralized urban spatial structure reduces the wages of workers. In large and medium-sized cities in the central region in particular, decentralized urban spatial structure has a relatively strong inhibitory effect on wage increases. The size of an urban population has a great effect on economic growth and wage increases because economies of agglomeration are based on the size of the population. In the future, it will be necessary for large and medium-sized cities to focus their urbanization efforts on realizing a compact urban spatial structure in order to avoid excessive land development and urban sprawl. By strengthening the agglomeration effect within cities, the urban spatial structure can improve the wages of workers.