Wage Differentials between Temporary and Permanent Workers in Taiwan
Date Issued
2015
Date
2015
Author(s)
Chu, Wei-Tzu
Abstract
This study mainly explored the wage differentials between typical (permanent) and atypical (temporary) workers. It further examined the effects of prosperity on such differentials, i.e., whether such differentials would expand or shrink in accordance with domestic prosperity. In addition, this study also made improvements on methods that estimate the wage differentials between typical and atypical workers, especially on the ""endogenous switching model"" and the ""Oaxaca decomposition method"". The results from empirical study showed: (1) There’s architectural difference of the wage estimation between the permanent and temporary workers, and this indicates the dual labor market.(2) Workers with higher education, professional jobs, full-time employed spouse, and fewer children are more inclined to choose permanent employment; (3) For workers with higher education, seniority at current posts, and more prospective years of service, their wages and compensations are higher if they are permanent employees than they are not; (4) The wage differentials between typical workers and atypical workers mainly result from aptitude differentials rather than from discrimination; and (5) The wage differentials between typical workers and atypical workers may vary with prosperity: they will shrink during the boom time and expand during the downturn.
Subjects
permanent workers
temporary workers
wage differentials
endogenous switching model
Oaxaca decomposition
dual labor market
prosperity
Type
thesis
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ntu-104-R02341013-1.pdf
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