Foreign direct investment and wage differentials in Taiwan

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Title:	Foreign direct investment and wage differentials in Taiwan
Authors:	Jiang, Lily;Su, Yi-pin
Contributors:	淡江大學經濟學系
Keywords:	Foreign direct investment;wage differentials;wage inequality
Date:	2006-12
Issue Date:	2009-11-30 18:36:59 (UTC+8)
Publisher:	Abingdon, Oxon: Taylor & Francis
Abstract:	The ease of restrictions on foreign direct investment in China since 1990 has attracted a continuous and dramatic flow of outward investment from Taiwan to the mainland. At the same time, the relative wages for skilled workers in Taiwan have risen mildly despite a rapid increase in the share of educated workers in its labor market. The aim of this paper is to explore the linkage between capital outflows to China and the wage share of skilled workers in Taiwan over the period 1991 – 2001. We find that the pattern of changes in relative wages is consistent with shifts in the relative demand for skilled labor. For the most part, the increases in the relative demand for skilled workers could be attributable to within-industry factors. Findings also indicate that outward direct investment to China has a significantly positive impact on the skilled labor wage share.
Relation:	Journal of International Trade and Economic Development 15(4), pp.525-536
DOI:	10.1080/09638190601037609
Appears in Collections:	[Graduate Institute & Department of Economics] Journal Article

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