This paper studies the mechanisms underlying the apparent stability of the individual wage income distribution in Taiwan. An original decomposition methodology based on micro-simulation techniques is porposed. Applied to the distribution of income in Taiwan since 1979 it permits isolating the respective impact of changes in : a) the earning structure ; b) labor-force participation behavior ; and c) the sociodemographic structure of the population, with special emphasis on education. It appears that the stability of the distribution of wages in Taiwan is the result of various structural forces which happened to offset each other. In particular, we find that the strong unequalizing effect of rising returns to education has been offset by changes in the educational structure, which had a clear equalizing impact on the distribution of individual wage income.
|Number of pages||31|
|Journal||Revue d'Economie du Developpement|
|State||Published - Dec 1 1999|
ASJC Scopus subject areas
- Economics, Econometrics and Finance(all)