Abstract: The Paper basis on the New Geography Economics angle, through dividing the demand to inner demand and outer demand ,we construct an new wage function include the company concentration .And then we use 219 cities panel date1998～2008 and use the spatial analysis method to the empirical studies ,the result shows that the cities between China has strong spatial interaction ,the concentration parameter is positive to the wage level and more classical in the east of China. This approves that the middle and west region through enhance the environmental and attract industry movement can release the difference of the wage in the different part of China.