| Summary: | 碩士 === 國立臺灣大學 === 經濟學研究所 === 100 === Using time series data in Taiwan over the period 1960-2010, this paper examines the existence and extent of pulling effect of raising public sector wage on the private sector wage. Our empirical results show that the pulling effect does exist, and 1% of increasing public sector wage rise will lead to an increase of private sector wage growth about 0.1%. Besides, due to the time lag between policy decision and implementation, the pulling effect performs as a preannouncement effect. The empirical results also support that the effect is smaller before early 1980s, and becomes bigger thereafter, then tends to decrease in 2000s.
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