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Wage Structure Effects of Taiwan's Science and Technology Development Policy

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  • James P. Vere

Abstract

This article extends the demand shift analysis of Katz and Murphy (1992) to examine the impact of Taiwan's science and technology development policy on the wage structure between 1979 and 1998. Changes in factor demand are required to account for changes in the wage structure throughout this time. Decomposing factor demand shifts by industry reveal that for men with a vocational college education, the policy can account for 30 percent of the increase in demand; for a university qualification, the amount is 20 percent. It is argued that the policy effect was mostly exogenous.

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  • James P. Vere, 2005. "Wage Structure Effects of Taiwan's Science and Technology Development Policy," Asian Economic Journal, East Asian Economic Association, vol. 19(2), pages 159-180, June.
    • Handle: RePEc:bla:asiaec:v:19:y:2005:i:2:p:159-180
    DOI: 10.1111/j.1467-8381.2005.00201.x
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    1. John E. DiNardo & Jörn-Steffen Pischke, 1997. "The Returns to Computer Use Revisited: Have Pencils Changed the Wage Structure Too?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(1), pages 291-303.
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    Cited by:

    1. Bishop, John A. & Grodner, Andrew & Liu, Haiyong & Chiou, Jong-Rong, 2007. "Gender earnings differentials in Taiwan: A stochastic frontier approach," Journal of Asian Economics, Elsevier, vol. 18(6), pages 934-945, December.

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