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Worker turnover and job reallocation in Taiwanese manufacturing


  • Meng-Wen Tsou
  • Jin-Tan Liu
  • James Hammitt


The paper examines time-series patterns of job and worker flows in a newly industrializing economy (NIE). Using plant-level data from the Taiwan manufacturing sector, the cyclical behaviour of job reallocation and its relation with worker turnover is analysed. It is found that job reallocation and labour turnover are procyclical, at both the aggregate and (two-digit) industry levels. The share of worker turnover caused by gross job reallocation is 17%, suggesting the majority of observed worker turnover reflects rotations of positions that are neither created or destroyed. There is substantial heterogeneity in plant-specific job and worker turnover patterns. Job creation and job destruction rates are higher among small plants and private-sector plants. The private plants are more dynamic than public plants in terms of worker turnover. Controlling for year and industry effects, it is found that job creation and worker turnover are both higher in export-oriented industries.

Suggested Citation

  • Meng-Wen Tsou & Jin-Tan Liu & James Hammitt, 2002. "Worker turnover and job reallocation in Taiwanese manufacturing," Applied Economics, Taylor & Francis Journals, vol. 34(4), pages 401-411.
  • Handle: RePEc:taf:applec:v:34:y:2002:i:4:p:401-411
    DOI: 10.1080/00036840110046016

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    References listed on IDEAS

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    4. Zhuang, Juzhong, 1996. "Estimating Distortions in the Chinese Economy: A General Equilibrium Approach," Economica, London School of Economics and Political Science, vol. 63(252), pages 543-568, November.
    5. Wang, Zhi, 1997. "The Impact of China and Taiwan Joining the World Trade Organization on U.S. and World Agricultural Trade: A Computable General Equilibrium Analysis," Technical Bulletins 184382, United States Department of Agriculture, Economic Research Service.
    6. Dewatripont, Mathias & Michel, Gilles, 1987. "On closure rules, homogeneity and dynamics in applied general equilibrium models," Journal of Development Economics, Elsevier, vol. 26(1), pages 65-76, June.
    7. Bandara, Jayatilleke S, 1991. " Computable General Equilibrium Models for Development Policy Analysis in LDCs," Journal of Economic Surveys, Wiley Blackwell, vol. 5(1), pages 3-69.
    8. Dirk Willenbockel, 1999. "On apparent problems with the use of the Armington aggregator in computable general equilibrium models," Applied Economics Letters, Taylor & Francis Journals, vol. 6(9), pages 589-591.
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    Cited by:

    1. De-Chih Liu, 2010. "Job creation and destruction by region in Taiwan," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 44(1), pages 167-184, February.
    2. Tsou, Meng-Wen & Liu, Jin-Tan, 2005. "Wage dispersion and employment turnover in Taiwan," Economics Letters, Elsevier, vol. 88(3), pages 408-414, September.
    3. Liu, De-Chih, 2006. "The entry and exit of workers in Taiwan," Economics Letters, Elsevier, vol. 92(3), pages 330-332, September.
    4. Tsou, Meng-Wen & Liu, Jin-Tan & Hammitt, James K. & Chang, Ching-Fu, 2013. "The impact of foreign direct investment in China on employment adjustments in Taiwan: Evidence from matched employer–employee data," Japan and the World Economy, Elsevier, vol. 25, pages 68-79.

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