Wage Differentials by Education and City Size: Evidence from Chinese Cities

Abstract

This thesis uses CFPS's 2014 and 2016 data, from the perspective of differences in education levels and city size, using the two-way fixed-effect model and quantile regression to explore how the different educational workers' nominal monthly income gap changes with the expansion of the urban population. As for city size, on average, for every 1% increase in city size, the nominal monthly income of workers will increase by 0.4%. For every 1% increase in the size of the city, the nominal monthly wage of the college education group will increase by 0.9%, and the wage of the postgraduate workers will increase almost by 1.2%. The results show that only workers with a college and postgraduate education level can expand the monthly income gap with the lowest educational level group as the urban population grows. However, the nominal monthly income gap between the high-school educated group and junior high school and below educated workers is insignificantly affected by the city's expansion. JEL Classification J31, J23, J26, C51, I18 Keywords Education Level, City Size, Wage Title Wage Differentials by Education level and City Size: Evidence from Chinese cities Abstrakt Tato práce využívá data CFPS z let 2014 a 2016 z pohledu rozdílů v úrovních vzdělání a velikosti města pomocí dvoucestného modelu s fixním...