Proceedings of the 2025 10th International Conference on Financial Innovation and Economic Development (ICFIED 2025)

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The Relationship between City Size and Income in China

Authors
Xiangyu Ji1, *, Tianqing Zheng2
1Department of Economics, Durham University, Durham, United Kingdom
2Department of Land Economy, The University of Cambridge, Cambridge, United Kingdom
*Corresponding author. Email: jixiangyu2024@gmail.com
Corresponding Author
Xiangyu Ji
Available Online 5 May 2025.
DOI
10.2991/978-94-6463-702-1_81How to use a DOI?
Keywords
Urbanization; Income; Inverse U-shape
Abstract

Urbanization is a key driver of economic growth, and its effects on income have garnered significant academic attention, particularly in relation to agglomeration effects. This paper examines the relationship between urbanization and wages using data from the 2018 Chinese Family Panel Studies (CFPS). By employing nonlinear regression models, the analysis uncovers an inverted U-shaped relationship between city size and income, indicating that while urbanization initially boosts wages, beyond a certain point, congestion effects begin to outweigh agglomeration benefits, leading to diminished wage growth. Furthermore, a hierarchical linear model (HLM) is applied to account for the heterogeneity across provinces, with results showing that the base wage levels vary between provinces, although the effect of urbanization on wages remains consistent. The study also addresses the limitations of using provincial urbanization rates due to privacy constraints, offering suggestions for future research, such as incorporating city-specific corporate data to overcome this limitation. This research contributes to the understanding of urbanization’s economic impacts and provides insights into sustainable urban development strategies for China.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2025 10th International Conference on Financial Innovation and Economic Development (ICFIED 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
5 May 2025
ISBN
978-94-6463-702-1
ISSN
2352-5428
DOI
10.2991/978-94-6463-702-1_81How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Xiangyu Ji
AU  - Tianqing Zheng
PY  - 2025
DA  - 2025/05/05
TI  - The Relationship between City Size and Income in China
BT  - Proceedings of the 2025 10th International Conference on Financial Innovation and Economic Development (ICFIED 2025)
PB  - Atlantis Press
SP  - 791
EP  - 802
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-702-1_81
DO  - 10.2991/978-94-6463-702-1_81
ID  - Ji2025
ER  -