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Who Will Have a Higher Unemployment Probability and a Lower Wage Rate?

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Abstract

Using the data from Taiwan’s 2007 manpower utilization survey, we explore the effects of personal characteristics on one’s employment probability and wage rate. The results from Heckman’s (1979) two-step estimation approach show that if one is less educated or at the age of youth, did not complete school, invests less in the post-school OJT, works at smaller-sized firms, has ever retired or changed jobs, plans to change jobs or to look for extra jobs, works in the south or north area of Taiwan, or enters the industries of agriculture, forestry, fishing, animal husbandry, other services, accommodation services, and eating-drinking places, then his unemployment probability would tend to be higher but the wage rate that he receives would tend to be lower than it would otherwise be.

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  • Feng-Fuh Jiang, 2009. "Who Will Have a Higher Unemployment Probability and a Lower Wage Rate?," IEAS Working Paper : academic research 09-A002, Institute of Economics, Academia Sinica, Taipei, Taiwan.
  • Handle: RePEc:sin:wpaper:09-a002
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