Expanding college access in Taiwan, 1978 - 2014: Effects on graduate quality and income inequality

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Title:	Expanding college access in Taiwan, 1978 - 2014: Effects on graduate quality and income inequality
Authors:	Shao-Hsun Keng;Chun-Hung Lin;Peter Orazem
Date:	2017-01-19
Issue Date:	2017-02-14 02:11:01 (UTC+8)
Publisher:	University of Chicago Press
Abstract:	Between 1990 and 2014, Taiwan increased the college share of its labor force from 7 to 32 percent by converting junior colleges to 4-year colleges. Such a rapid surge in skill supply should suppress college wages and lower wage income inequality. Instead, wage inequality rose 7 percent since 1978. We show that the surge of weaker college graduates made them poor substitutes for better-trained college graduates and led to an increase in wage inequality within skill groups. Rising wage inequality due to increased variation in the quality of young college graduates added another source of inequality to the Taiwan labor market. The Taiwan case shows that increasing college access alone will not lower inequality.
Relation:	Journal of Human Capital 11(1), pp.1-34
DOI:	10.1086/690235
Appears in Collections:	[Graduate Institute & Department of Industrial Economics] Journal Article

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