With the transition of China from a settled society to a migrating one, the rational choice of employment cities by the largescale migrants has a long term impact on the urban wage premium. Meanwhile, urban wage premium also affects labors choice of cities. Using the dynamic monitoring data of floating population in 2017, this paper built a disposal effect model with endogenous individual choice, and identified the existence of urban wage premium in China. Labors heterogeneity and urban characters had significant impacts on the choice of cities. By controlling the endogenous selection bias, we found that the wage premium of megacity behemoths and megacities became larger, while the large cities premium vanished. Small and medium cities had more competitive wage than large cities. These results, caming from the rational choice of labors, suggest that differentiated development policies should be implementd to realize the overall optimization and internal coordination of the urban system.

As the quantitative demographic dividend is diminishing, improving labor quality and individual human capital become the key to maintain the highquality development of China's economy. In addition to increasing labor supply, population agglomeration is an efficient way of improving individual human capital through the mechanisms of knowledge spillover and employment competition. Based on the theoretical model of urban individual human capital and population agglomeration, this paper empirically examines the impact of population agglomeration on individual human capital using Chinese provincial data from 2000 to 2015. Population agglomeration could significantly improve urban individual human capital, in a sense that a higher degree of population agglomeration is associated with a larger effect on individual human capital. These findings are consistent with the agglomerative economics theory. The results of panel threshold regression show that the effect of population agglomeration on individual human capital could be significantly enhanced when knowledge spillover and employment competition exceed the threshold value.