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The Dymanics of regional labour markets in Taiwan, 1994-2007


  • Chun-Hung A. Lin

    (Department of Industrial Economics, University of Tamkang)

  • Chun-Hsuan Wang

    (Department of Finance, University of Ming Chuan)

  • Kuang-Cheng A. Wang

    (Social Science Division, Center for General Education, University of Chang Gung)


This paper investigates the role of regions to the outcomes of Taiwan's labour market over the period 1994-2007 using panel data on average annual wage and unemployment across the country's 23 regions. While wage inequality is rising within regions, there is a wage convergence between regions, although the speed is very low. The analysis on the degree of persistence of regional unemployment in Taiwan's regional labour market is also provided. Furthemore, the existence of a wage curve in Taiwan is somewhat controversial, although its pattern has been found in more than 40 countries. Using a panel two-stage least squares method, we find that there is no significantly negative relationship between wage and unemployment in Taiwan.

Suggested Citation

  • Chun-Hung A. Lin & Chun-Hsuan Wang & Kuang-Cheng A. Wang, 2009. "The Dymanics of regional labour markets in Taiwan, 1994-2007," Ekonomia, Cyprus Economic Society and University of Cyprus, vol. 12(1), pages 37-55, Summer.
  • Handle: RePEc:ekn:ekonom:v:12:y:2009:i:1:p:37-55

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    JEL classification:

    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search


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