International competition and wage differentials - the case of Taiwan

Hsin Chang Lu

Journal of International Trade & Economic Development, 2000, vol. 9, issue 1, pages 101-114

Abstract: This paper documents and investigates the structure of relative wages among skill groups (distinguished by gender, education and potential experience) in Taiwan over the period 1978 to 1990. To account for these changes, I construct a model of wage determination in which demographic groups are treated as separate inputs into the production process. Thus, the changes in relative wages are determined by (i) changes in the relative supply of input factors; (ii) changes in the product composition; and (iii) biased technical changes that shift the relative demand for inputs. Analysis of OECD trade statistics shows that manufacturing imports from Taiwan to OECD, the main source of derived demand for the unskilled labour, exhibited a time pattern that matches the overall relative demand shifts.

Keywords: Count Sample; Homogeneity Condition; Trade-related Demand Shifts, (search for similar items in EconPapers)
Date: 2000
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Persistent link: http://EconPapers.repec.org/RePEc:taf:jitecd:v:9:y:2000:i:1:p:101-114

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