The Impact of Guest Workers on the Male Labor Supply of Taiwan’s Manufacture Sector

• Main Authors: Chong-Ming Huang, 黃崇銘
• Other Authors: Yi-Hsiue Wang
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/71307398329676641251

碩士 === 世新大學 === 經濟學研究所(含碩專班) === 95 === The purpose of this research is to analyze how guest workers affect domestic labor market in Taiwan. By examining the labor-supply side, this research focuses only on male laborers of manufacturing industry, and tries to see how male laborers’ wage level and working hours being influenced. Using the 1997-2005 Manpower Utilization Survey conducted by the Accounting and Statistics Department of Taiwan, the empirical results of two-stage instrumental variables model show that guest workers do have negative impact on domestic workers of manufacturing industry. By the 2005 single-year data, we find the wage level of both high- and low-skilled laborers in Taiwan are negatively affected by the inflows of guest workers .Moreover, the elasticity of labor supply is significantly negative. Furthermore, by the pooling-data of 1997-2005, we find substantial evidence that the labor supply curve for male laborers of manufacturing industry in Taiwan is actually backward-bending, which means the labor supply curve in negative-sloped. As such, the inflows of guest workers not only lower the wage level, but also increase working hours of domestic manufacturing workers in Taiwan. The empirical results of 1997-2005 pooling-data are similar to that of 2005. In short, we might have to reconsider the current policy about guest workers in Taiwan.