The Determinant of Income Inequality in Taipei

• Main Authors: Chia-Ling Chung, 鍾佳凌
• Other Authors: none
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/95733364525557353050

碩士 === 逢甲大學 === 經濟學所 === 97 === Over the past three to four decades, the economy in Taiwan has changed very huge and rapid, such as the pattern of industry. This change could be due to the change in government policy, and in turn affects the distribution of income in Taiwan. This paper uses the pooling data of 12 Districts in Taipei City from 1997 to 2007, to analyze the factors of income inequality in Taipei City. Using Oshima index as a proxy of income inequality, we found several results. First, the relationship between human capital, measured by the variation of schooling years, and income inequality is significantly positive. Meaning that, the bigger difference in family members’ schooling years will increase the degree of income inequality. Second, transfer expenditures on taxes will deteriorate inequality on income; however, transfer expenditures on social insurance will reduce the gap in income between the rich and the poor. Finally, the skill-biased technological change, measured by the number of personal computers owned by household, also affects positively income inequality in Taipei City. Compared with those family members with less computers, more computers mean more skill-biased technology and will bring more salaries for them.