This paper explorers the impact of interplay between transport costs and commuting costs on urban wage inequality and economic agglomeration within a new economic geography model. As in former study, we find that workers tend at the same time to agglomerate in order to limit transport costs of manufactured goods and to disperse in order to alleviate the burden of urban costs. In this paper, we pay special attention to wages and spot light on how the urban wage inequality is determined by the interplay between urban costs and transport costs. We also solve analytically the break points and the sustain points, and disclose their relationships with transport costs and commuting costs in a general equilibrium model.