| Abstract | Using the marginal productivity theory of salary, This paper develops Ciccone’s model (1996,2002) and establishes urban wage model, then expounds the dynamic relationship between technical externalities in the process of urban agglomeration and urban wage. Based on this, using 25 prefecture-level cities’ panel data in Yangtze River Delta in 2000- 2010, the paper conducts empirical test. The results show that along with the enhancement of urban agglomeration degree, the correlation of technical externalities and urban wage is significant positive, which further verify the technical externalities have an important influence on urban wage gap. Meanwhile, the city human capital, FDI, fixed asset investment, the proportion of non-state-owned economy have an effect on urban wage gap. In addition, this paper also shows that the current urban agglomeration degree is insufficient, which means that urban population density has not yet reached the optimal value. These conclusions have an important guiding significance on China's current urbanization development strategy and balanced development between the cities. |