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Spatial spillovers of regional wages: Evidence from Chinese provinces

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  • Huang, Qiong
  • Chand, Satish

Abstract

This study investigates the effects of spatial interactions on local wages based on a panel data from 31 Chinese provinces between 2001 and 2010. Using the Global Moran's I statistic, we provide empirical evidence for the presence of spatial dependencies in provincial wages. Then, we estimate the provincial wage equation using a spatial panel model that controls for spatial heterogeneity and spatial interdependence as well as other regional characteristics. The empirical results show that spatial wage spillover plays an important role in the determination of local wages. Furthermore, we find that human capital and economic growth are two underlying forces strengthening wage spillovers across provinces.

Suggested Citation

  • Huang, Qiong & Chand, Satish, 2015. "Spatial spillovers of regional wages: Evidence from Chinese provinces," China Economic Review, Elsevier, vol. 32(C), pages 97-109.
  • Handle: RePEc:eee:chieco:v:32:y:2015:i:c:p:97-109
    DOI: 10.1016/j.chieco.2014.12.001
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    Cited by:

    1. Butkus Mindaugas & Matuzevičiūtė Kristina, 2016. "Evaluation of Eu Cohesion Policy Impact on Regional Convergence: Do Culture Differences Matter?," Economics and Culture, De Gruyter Open, vol. 13(1), pages 41-52, June.
    2. Aleh Mazol, 2016. "Spatial wage inequality in Belarus," BEROC Working Paper Series 35, Belarusian Economic Research and Outreach Center (BEROC).
    3. Huasheng Song & Min Zhang & Ruqu Wang, 2016. "Amenities and spatial talent distribution: evidence from the Chinese IT industry," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 9(3), pages 517-533.

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    Keywords

    Wages; Spatial panel model; Wage spillovers; China;

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