The Impacts of Raising Public Sector Wage on the Private Wage in Taiwan
Date Issued
2012
Date
2012
Author(s)
Huang, Kuo-Chih
Abstract
Using time series data in Taiwan over the period 1960-2010, this paper examines the existence and extent of pulling effect of raising public sector wage on the private sector wage. Our empirical results show that the pulling effect does exist, and 1% of increasing public sector wage rise will lead to an increase of private sector wage growth about 0.1%. Besides, due to the time lag between policy decision and implementation, the pulling effect performs as a preannouncement effect. The empirical results also support that the effect is smaller before early 1980s, and becomes bigger thereafter, then tends to decrease in 2000s.
Subjects
public sector wage
private sector wage
wage interaction
wage linkage
wage raise
wage growth
Type
thesis
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ntu-101-P98323027-1.pdf
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