Education, Development, and Wage Inequality: The Case of Taiwan

James P Vere

Economic Development and Cultural Change, 2005, vol. 53, issue 3, 711-35

Abstract: This article uses a multiple-stage Theil decomposition to examine the contribution of five development processes to wage inequality in Taiwan: increases in educational attainment, the expansion of skill-intensive industries, factor-specific technical change, population aging, and the entry of women into the labor force. Since the supply of skill tends to remain constant within cohorts, the Theil decomposition is useful in separating the effects of supply- and demand-related factors on the wage structure. Increases in educational attainment tended to reduce inequality in the 1980s, but factor-specific technical change increased inequality in the 1990s.

Date: 2005
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Persistent link: https://EconPapers.repec.org/RePEc:ucp:ecdecc:y:2005:v:53:i:3:p:711-35

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