The Impact of Workforce Composition on Plant Productivity and Wages: Evidence from the Taiwan Electronics Industry
Resource
經濟論文叢刊, 39(2), 177-212
Journal
經濟論文叢刊
Journal Volume
39
Journal Issue
2
Pages
177-212
Date Issued
2011-06
Date
2011-06
Author(s)
Abstract
This paper investigates the effect of workforce composition on plant productivity and wages using a unique employer-employee matched data set with data from Taiwan electronics plants. Specifically, we adopt the methodology proposed by Levinsohn and Petrin (2003) to address the endogeneity caused by the correlation between inputs and unobservable productivity shocks when estimating production functions. Our results suggest that plant productivity increases with plant size, plant age, and the proportion of male, younger and more-educated workers within a plant. Moreover, the impact of the education composition of the workforce on plant productivity is more significant for large-scale plants. In addition, while younger workers are more productive than older ones, there is an age-wage premium with older workers being paid higher wages. Finally, employing foreign workers is beneficial to plant productivity, yet such benefit decreases as the ratio of foreign workers increases.
Subjects
勞工組成特性(workforce composition), 合併資料(matched data), 生產力(productivity), 薪資(wage), 外籍勞工(foreign labor)
Type
journal article
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