Minimum wage on the unemployment rate:Evidence from Taiwan

• Main Authors: WEN-ZHI WANG, 王文志
• Other Authors: Ching-yi Chiang
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/06816142555851032923

碩士 === 銘傳大學 === 經濟學系碩士班 === 101 === This study investigates the effect of minimum wage on the unemployment during the sample period of 1993-2011 in Taiwan. Although many related studies in the literature have focused on the minimum wage effect on the employment of adolescent group, not so many have focused on regional influence and age influence. Therefore this study investigates from another angle the minimum wage effect. We use panal-data econometric method to estimate and test hypothesis by diving the sample according to age (19-24 years old, 25-44 years old, and 45-64 years old) and gender. The Two-Factor Fixed Effects Model is used to investigate the existence of the minimum wage effect. The study finds that when the minimum wage increases there is no evidence of a change in the unemployment for the adolescent (19-24 years old) and the elderly group (45-64 years old) but a positive effect on the unemployment of middle-aged group (25-44 years old). There is also an evidence of a positive effect on the male’s unemployment but no significant effect on female’s unemployment. With regard to the region fixed effect, the evidence shows that Keelung has the maximum positive effect, followed by Tainan and Kaohsiung, and that Penghu has the maximum negative effect, followed by Hsinchu and Changhua. As to the time fixed effects the study shows they are negative before 2000, but after 2001 they are almost positive.