Analysis on the interaction of employment, wages and income gap of urban residents in China

Abstract

The employment, wages and income gap of urban residents in the eastern, central and western of China, were interacted and influenced mutually, how to promote their coordinated development, which has become the top priority of the current government work, but also the focus of scholars research. The number of employees at the end of the year, the total wages and the Gene coefficient of urban residents in China, were regarded as explanatory variable and explained variable in the paper. The dynamic interaction of employment, wages and income gap were measured by using the software of Eviews6.0 based on the panel data in China Statistical Yearbook from 2002 to 2012. The research results have shown the interaction of employment on improving or worsening the income gap is less than the interaction of the wages, and the interaction of employment on income gap is gradually decreasing, the interaction of wages on income gap is increasing from eastern to western in China.