Consumer Service Industry Agglomeration, Income Level and Skill Premium

Abstract

This paper empirically tests the influence of consumer service industry agglomeration on the income level and skill premium of Chinese workers by using the survey data of Chinese residents' income. It is found that the agglomeration of consumer service industry has a significant role in promoting the overall income level of residents in China, but it has an additional effect on the income level of skilled workers, which increases the skill premium. The agglomeration of consumer service industry can only significantly improve the income level of labor earners and produce the effect of skill premium in labor earners. The agglomeration of consumer service industry has significantly increased the income level and skill premium of coastal workers than that of inland areas. For this, should encourage laborer to coastal big city collect.