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The Employer Size-Wage Differentials in Taiwan

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  • Yih-chyi Chuang
  • Pi-fum Hsu

Abstract

This paper examines the factors affecting wage differentials for firms of different sizes, using Taiwan's Manpower Utilization Survey data of 1996. The main findings of the paper are as follows: (a) People with years of education, working experience, degrees in Science, Engineering, and Medicine, as well as females and married people tend to have a greater preference for working in big firms. Workers in public utility companies and manufacturing industries also prefer to work in big firms. While professionals, technicians, and service and sales workers prefer to work in large firms, business executives and managers have a preference for small firms. (b) Small-scale (less than 100 workers) firms tend to have a negative selection, while large-scale (more than 500 workers) firms tend to have a positive selection. That is, under self-selection, more able workers choose to work at large firms and less able workers at small firms.

Suggested Citation

  • Yih-chyi Chuang & Pi-fum Hsu, 2004. "The Employer Size-Wage Differentials in Taiwan," Small Business Economics, Springer, vol. 23(4), pages 285-297, November.
  • Handle: RePEc:kap:sbusec:v:23:y:2004:i:4:p:285-297
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    Cited by:

    1. Zafar Mueen Nasir & Nasir Iqbal, 2009. "Employers Size Wage Differential: Does Investment in Human Capital Matter?," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 48(4), pages 509-521.

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