Abstract

The paper analyzes the panel data in China during the period 1997-2015 with quantile regression method to confirm the determinants of regional wage inequality. The results show that international trade in terms of import and export is the main factor responsible for the increasing wage inequality, while the technology change measured by the expense of RD has various influences on different Chinese regions, it’s found that in relation to the study of wage inequality and technology change, wage level in the regions of the most and the least expense of RD are relatively more sensible to technology change, when combined with the other variables considered, it’s inferred that regional wage inequality is negatively related to technology change. In the last part, some economic policy suggestions are proposed.

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