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Returns to Education in Taiwan: A Cross-Sectional and Cohort Analysis

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  • Jessica L. Baraka

    (Princeton University)

Abstract

The last two decades have seen a rapid increase in the average educational attainment of the population of Taiwan. This paper examines the effects of that educational expansion on Taiwan's wage structure. I examine not only changes in the cross-sectional return to education, but the experiences of synthetic birth cohorts. I find that in younger cohorts, those with university degrees have seen a decline in their earnings premium. I then look to see whether this decline can be explained by the increase in supply of better-educated workers, rather than by a combination of supply and demand factors. I conclude that under certain reasonable assumptions, changes in the earnings structure in Taiwan may be attributed to changes in the relative size of education-level groups.

Suggested Citation

  • Jessica L. Baraka, 1999. "Returns to Education in Taiwan: A Cross-Sectional and Cohort Analysis," Working Papers 222, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
    • Handle: RePEc:pri:rpdevs:baraka_education_taiwan.pdf
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    References listed on IDEAS

    as
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    2. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4, National Bureau of Economic Research, Inc.
    3. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, March.
    4. Welch, Finis, 1979. "Effects of Cohort Size on Earnings: The Baby Boom Babies' Financial Bust," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 65-97, October.
    5. Gindling, T. H. & Goldfarb, Marsha & Chang, Chun-Chig, 1995. "Changing returns to education in Taiwan: 1978-1991," World Development, Elsevier, vol. 23(2), pages 343-356, February.
    6. Hay Woo, Jennie, 1991. "Education and economic growth in Taiwan: A case of successful planning," World Development, Elsevier, vol. 19(8), pages 1029-1044, August.
    7. George E. Johnson, 1997. "Changes in Earnings Inequality: The Role of Demand Shifts," Journal of Economic Perspectives, American Economic Association, vol. 11(2), pages 41-54, Spring.
    8. Jacob A. Mincer, 1974. "Schooling and Earnings," NBER Chapters, in: Schooling, Experience, and Earnings, pages 41-63, National Bureau of Economic Research, Inc.
    9. Berger, Mark C, 1985. "The Effect of Cohort Size on Earnings Growth: A Reexamination of the Evidence," Journal of Political Economy, University of Chicago Press, vol. 93(3), pages 561-573, June.
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    Cited by:

    1. Jessica L. Baraka, 1999. "The Gap Remains: Gender and Earnings in Taiwan," Working Papers 221, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
    2. Jessica L. Baraka, 1999. "Does Type of Degree Explain Taiwan's Gender Gap?," Working Papers 220, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..

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    More about this item

    Keywords

    Taiwan;

    JEL classification:

    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education

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