A Study of the Determinants of Wage in Taiwan

• Main Authors: Pan, Ching-Ti, 潘京蒂
• Other Authors: Hu, Jin-Li
• Format: Others
• Language: en_US
• Published: 2017
• Online Access: http://ndltd.ncl.edu.tw/handle/n9wt3x

博士 === 國立交通大學 === 經營管理研究所 === 105 === This paper employs Blanchard and Katz’s wage model (1999) to explore what determinants affect the nominal wage in Taiwan and considers the spurious positive relationship between real total annual export value of foreign trade and nominal wage. We implement the auto regressive distributed lag (ARDL) bounds tests procedure to cointegration in order to examine the existence of any long-run relationship and use the error correction model (ECM) to look at the short-run relationships. The results point out that an export-oriented country can help pump up its economic activities immediately, but the nominal wage will not sufficiently reflect this simultaneously. The nominal wage does not sufficiently move upward with this increase and a rising price index will cause social welfare losses in Taiwan in the long term. In addition, SMEs accounted for 97.69% of all enterprises in Taiwan and created NT$ 2.8 million export values, which rank 1st globally and is far higher than the average number in global. Hence, this paper analyze the related economic activities of SMEs and non-SMEs, and find that the sales amount increased, either SMEs or non-SMEs, the wage also significantly rise. Particularly, the wage rise of non-SMEs is twice the amount of wages of SMEs.