Than What They Would Have Been

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Change of Wage Structure in Taiwan

Chichun Fang School of Labor and Employment Relations University of Illinois at Urbana-Champaign [email protected] February 6, 2009

Abstract In this talk I examine the effect of increasing in relative supply of college graduates in Taiwan since mid 1990s on employment outcomes. I conclude that while the mean starting salaries of college graduates decreased, college graduates in early 2000s are generally better off than what they would have been in early 1990s. The decreasing starting salary is caused by a thicker lower tail of wage distribution rather than the shifting of the distribution itself. A semiparametric variance decomposition is also used to examine the causes of change in wage inequality in mid 2000s.

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