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Urban bias and wage inequality

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  • Jiancai Pi
  • Yanwei Fan

Abstract

This paper explores how urban bias affects skilled–unskilled wage inequality through building several general equilibrium models. In the basic model, we find that an increase in the degree of urban bias will widen wage inequality if the unskilled sector is more capital intensive than the skilled sector and reduce wage inequality if the skilled sector is more capital intensive than the unskilled sector. In the extended models, we find that the conclusion obtained in the basic model almost still holds under different conditions.

Suggested Citation

  • Jiancai Pi & Yanwei Fan, 2019. "Urban bias and wage inequality," Review of Development Economics, Wiley Blackwell, vol. 23(4), pages 1788-1799, November.
    • Handle: RePEc:bla:rdevec:v:23:y:2019:i:4:p:1788-1799
    DOI: 10.1111/rode.12603
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    Cited by:

    1. Jiancai Pi & Xinyi Liu, 2023. "Urban bias and multinational firms," Scottish Journal of Political Economy, Scottish Economic Society, vol. 70(1), pages 101-114, February.
    2. Pi, Jiancai & Zhang, Pengqing, 2021. "Redistribution and wage inequality," International Review of Economics & Finance, Elsevier, vol. 72(C), pages 510-523.
    3. Dianshuang Wang & Hongyun Huang & Xin Zhao & Fang Fang, 2023. "Green technological progress, agricultural modernization, and wage inequality: Lessons from China," Review of Development Economics, Wiley Blackwell, vol. 27(3), pages 1673-1698, August.
    4. Jiancai Pi & Kaiqi Zhang & Xiangyu Huang, 2023. "Financial globalization and wage inequality," Scottish Journal of Political Economy, Scottish Economic Society, vol. 70(2), pages 144-157, May.
    5. Jiancai Pi & Xiangyu Huang, 2021. "Product Variety and Wage Inequality," Annals of Economics and Finance, Society for AEF, vol. 22(1), pages 135-151, May.
    6. Chi‐Chur Chao & May Hu & Xuan Nguyen, 2022. "Manufacturing capital utilisation, firm dynamics and wage inequality," The World Economy, Wiley Blackwell, vol. 45(12), pages 3947-3970, December.

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