Rents and wages derived from spatial interaction analysis in Shanghai

Using the 1% National Population Sampling Survey, collected in 2015, this paper performs sensitivity analysis of the parameters in a spatial interaction model to evaluate and compare the locational benefits of origins and destinations among different hukou (locals and migrants) and educational types in a large Chinese city (Shanghai). While the macro patterns are consistent with other case studies, Shanghai presents some unique features that include residency status and differential educational levels, and these factors result in notable patterns of spatial organization. Compared with migrants, locals have longer trip lengths, and higher rents and wages. Well-educated workers travel longer and have higher rents and wages than the poorly-educated. The presence of high-tech, high-prestige employers (e.g., Huawei ) in the east-central area both attracts longer distance educated commuters, as well as generating higher wages, and potentially higher rents for those who choose to live and work in the same area, especially for locals. However, it is reassuring to see that there is a marked rent gradient over the distance from the CBD.