International Trade, Productivity Growth, Education and Wage Differentials: A Case Study of Taiwan

H.-C. Chang

No 783, Department of Economics - Working Papers Series from The University of Melbourne

Abstract: The source of changes in the wage differential between skilled and unskilled labor has been an important subject of debate for several decades. International trade and productivity growth are two main causes that have been suggested from large country studies. Recent research proposes education as another influence. All three causes have been significantly associated with Taiwan's economic development. This paper attempts to contribute to the literature by investigating wage differentials of Taiwan, a small open economy with a paucity of study on the issue of trade and wages. An Error Correction Model (ECM) incorporating both short and long term run effects is employed.

Keywords: WAGES; INTERNATIONAL TRADE; PRODUCTIVITY (search for similar items in EconPapers)
JEL-codes: C12 C15 C51 F10 F41 H52 J31 (search for similar items in EconPapers)
Pages: 19 pages
Date: 2001
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