The Impact of Taiwan Enterprises’Actions for the Globalization to the Labor Market

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In order to evaluate the impact of Taiwan enterprises’ actions for the globalization to the labor market, this study applied the survey data, industrial and commercial census, which was implemented by the DGBAS’s in 2011 to conduct empirical estimation. The main measures aimed at Taiwanese companies in responding to the globalization such as overseas-sales ratio, foreign shareholding (10% or more), control over foreign companies, establishment of branch offices abroad, service or labor transactions with foreign countries (such as hiring foreign workers) to domestic employee and wage in the labor market.

The empirical results show that if a firm’s foreign sales ratio increases, or the foreign shareholding increases, it would have positive effect on the number of labor hires in the domestic labor market; If a business established branches overseas, it would reduce the number of manpower hires. If a firm’s export ratio increases or foreign ownership increases, it will be improved the salaries of domestic employees.

However, if a firm purchased services and labor transactions with foreign countries (such as hiring foreign workers) which might have negative impacts on domestic labors’ rewards. It would be more obvious to response the process of globalization on the structure of high-low-skilled labor ratio in the electronic industry, the rest of other industries are still not significant.

Keywords: globalization, the industry and service census, supply chains, labor market
JEL Classification: E01, E20, O33
ISBN 9789865795436
Publication:Chung-Hua Institution for Economic Research

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