Wage Stagnation? Fact Disclosure and Cross-Country Comparison

Chang-Ching Lin, Juin-jen Chang and Shu-shiuan Lu
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Chang-Ching Lin: Institute of Economics, Academia Sinica, Taipei, Taiwan, https://www.econ.sinica.edu.tw/

No 14-A009, IEAS Working Paper : academic research from Institute of Economics, Academia Sinica, Taipei, Taiwan

Abstract: This paper sheds light on three important issues in the macroeconomics literature, which comes to a better understanding of Taiwan’s wage stagnation. First, we explore the trend of labor income shares, namely the labor income-output ratios, in Taiwan. This enables us to understand the distribution or tradeoff between labor and capital shares. Second, we calculate the correlation coefficients between real wages and gross domestic product (GDP) per capita, showing that whether Taiwan’s real wages and national incomes move in the opposite direction. Third, we calculate the gap between the marginal product of labor and real wage. This focus shows whether workers’ salary is consistent with their productivity in Taiwan. Of particular importance, in all issues we compare the Taiwan case with other neighboring countries of Asia. By these cross-country comparisons, we would like to examine whether the wage stagnation in Taiwan is unique or common in Asian countries. Finally, we briefly discuss Taiwan’s wage differences by sector and by education.

Keywords: Labor share; Comovement of real wage and GDP per capita; Wages and productivity (search for similar items in EconPapers)
JEL-codes: E24 E25 E32 O47 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2014-09
New Economics Papers: this item is included in nep-mac and nep-sea
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