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A Reexamination of the Time Path of Wage Differentials in Taiwan

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  • Lin, Chun-Hung A.
  • Orazem, Peter

Abstract

Contrary to the conclusions of a recent paper by Chen and Hsu (2001), wage inequality and returns to college-educated workers have risen in Taiwan since 1980. Government policies which have caused rapid expansion of the supply of new college graduates have depressed returns for only the youngest cohorts of college graduates. Older cohorts of college graduates experienced rising returns, as have college graduates as a whole. Young college educated women's returns fell more and older college educated women's returns rose more relative to their male counterparts. Consequently, the rising share of women in the labor force helped amplify these trends. Changing trade patterns have tended to increase labor demand in sectors that use educated labor more intensively, helping to raise returns to skill. However, in contrast to western economies, rising capital intensity does not appear to have accelerated the pay gap by skill in Taiwan.

Suggested Citation

  • Lin, Chun-Hung A. & Orazem, Peter, 2004. "A Reexamination of the Time Path of Wage Differentials in Taiwan," Staff General Research Papers Archive 10352, Iowa State University, Department of Economics.
  • Handle: RePEc:isu:genres:10352
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    Cited by:

    1. Risti Permani, 2009. "The Role of Education in Economic Growth in East Asia: a survey," Asian-Pacific Economic Literature, Asia Pacific School of Economics and Government, The Australian National University, vol. 23(1), pages 1-20, May.
    2. Yana van der Meulen Rodgers & Joseph Zveglich & Laura Wherry, 2006. "Gender Differences In Vocational School Training And Earnings Premiums In Taiwan," Feminist Economics, Taylor & Francis Journals, vol. 12(4), pages 527-560.
    3. Keng, Shao-Hsun & Orazem, Peter F., 2017. "Performance Pay, the Marriage Market and Rising Income Inequality in Taiwan," ISU General Staff Papers 201702050800001023, Iowa State University, Department of Economics.
    4. Yang, Sheng-Ping & DeBeaumont, Ronald, 2010. "Pay as incentive or pay as reward? The case of Taiwan," Journal of Asian Economics, Elsevier, vol. 21(1), pages 76-86, February.

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