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The Effects of Mandatory Maternity and Pregnancy Benefits on Women's Wages and Employment in Taiwan, 1984–1996

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  • Yu-Cheng Lai
  • Stanley Masters

Abstract

The Labor Standards Law of Taiwan requires employers to offer maternity and pregnancy benefits. Because these requirements increase the cost to firms of employing young women, standard economic theory predicts that such workers will experience a relative decline in employment, wages, or both. Using data from Taiwan's Manpower Utilization Survey for the years 1978–96, the authors find that in those sectors of the economy covered by the legislation, wages and employment of young women did indeed fall relative to the wages and employment of two comparison groups, young men and older women.

Suggested Citation

  • Yu-Cheng Lai & Stanley Masters, 2005. "The Effects of Mandatory Maternity and Pregnancy Benefits on Women's Wages and Employment in Taiwan, 1984–1996," ILR Review, Cornell University, ILR School, vol. 58(2), pages 274-281, January.
    • Handle: RePEc:sae:ilrrev:v:58:y:2005:i:2:p:274-281
    DOI: 10.1177/001979390505800206
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    References listed on IDEAS

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    1. Summers, Lawrence H, 1989. "Some Simple Economics of Mandated Benefits," American Economic Review, American Economic Association, vol. 79(2), pages 177-183, May.
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    Cited by:

    1. Kamhon Kan & Yen‐Ling Lin, 2011. "The Effects Of Employment Protection On Labor Turnover: Empirical Evidence From Taiwan," Economic Inquiry, Western Economic Association International, vol. 49(2), pages 398-433, April.

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