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On the puzzling slowdown of wage and productivity growth in Taiwan: evidence from a comparison with South Korea

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  • Frank Bickenbach
  • Wan-Hsin Liu
  • Hector Niehues-Jeuffroy

Abstract

type="main"> Since the early 2000s, the growth rate of real wages in Taiwan has been very low, even negative for high-skilled workers. This paper sheds light on the potential causes of this puzzling development through a comparison of Taiwan's performance with that of South Korea. In many dimensions, most notably wages and labour productivity, both economies developed quite similarly between 1995 and 2001–02, but diverged thereafter. We relate the development of wages and labour productivity in the two economies to sectoral structural change and to sectoral differences in labour productivity growth, skills upgrading, and foreign trade.

Suggested Citation

  • Frank Bickenbach & Wan-Hsin Liu & Hector Niehues-Jeuffroy, 2015. "On the puzzling slowdown of wage and productivity growth in Taiwan: evidence from a comparison with South Korea," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 29(1), pages 82-101, May.
    • Handle: RePEc:bla:apacel:v:29:y:2015:i:1:p:82-101
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    References listed on IDEAS

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    1. Dale W. Jorgenson & Marcel P. Timmer, 2011. "Structural Change in Advanced Nations: A New Set of Stylised Facts," Scandinavian Journal of Economics, Wiley Blackwell, vol. 113(1), pages 1-29, March.
    2. Daniel H. Rosen & Zhi Wang, 2011. "The Implications of China-Taiwan Economic Liberalization," Peterson Institute Press: All Books, Peterson Institute for International Economics, number pa93, January.
    3. Robert Stehrer, 2012. "Trade in Value Added and the Valued Added in Trade," wiiw Working Papers 81, The Vienna Institute for International Economic Studies, wiiw.
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