An Empirical Study of Foreign Workers, Minimum Wage and Unemployment in Taiwan

• Main Authors: Kuan, Chun-Ting, 管君庭
• Other Authors: 洪福聲
• Format: Others
• Language: zh-TW
• Published: 2019
• Online Access: http://ndltd.ncl.edu.tw/handle/d5zux9

碩士 === 國立政治大學 === 行政管理碩士學程 === 107 === The relationships among labor market dynamism, minimum wage and the number of foreign workers are complicated. Time-dependent adjustment in minimum wage would affect labor market dynamics, while labor market equilibrium is closely related to the introduction of foreign workers, minimum wage and workers’ willingness to work. This paper empirically investigated the interactions among Taiwan’s minimum wage, the number of foreign workers, the number of missing foreign workers, unemployment rate and labor participation rate using time series data for the period 1997-2018. Johansen cointegration test result supported the existence of long-run equilibrium relationship among five variables. The long-run equilibrium reported that the increase of minimum wage, labor participation rate, the number of foreign workers and missing foreign workers would lead to the decrease of unemployment rate. Additionally, the Granger causality test based on vector error correction model revealed that there is a bidirectional short-run causalities between unemployment rate and the number of foreign workers, and that there is a unidirectional short-run causalities running from the number of missing foreign workers to labor participation rate. This paper shed light on the interactions among labor market, minimum wage and the foreign worker policy, and informed the related policy-makers of statistics in terms of labor economics.