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Wage Differentials in Taiwanese Manufacturing, 1982–1997
Author(s) -
Tsou Meng–Wen
Publication year - 2002
Publication title -
asian economic journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.345
H-Index - 28
eISSN - 1467-8381
pISSN - 1351-3958
DOI - 10.1111/1467-8381.00155
Subject(s) - economics , wage inequality , wage , differential (mechanical device) , labour economics , inequality , technological change , manufacturing , wage growth , low wage , demographic economics , business , macroeconomics , mathematical analysis , mathematics , marketing , engineering , aerospace engineering
The present paper examines the impacts of technological change and trade flows on wage inequality across manufacturing industries. Using micro–level data from the Taiwan Manpower Utilization Survey (TMUS), 1982–1997, a slight decline in the log–wage differential between college and high–school workers is detected during this period. These results indicate that the accelerated growth in the relative supply of college graduates, combined with steady demand growth in favor of more highly educated workers, can largely explain the narrowing wage differentials within Taiwanese manufacturing over the period 1982–1997. In terms of demand–side factors, this study concludes that technology and trade are the two major forces driving the differences in wage inequality across industries.