Title page for etd-0523117-145859


[Back to Results | New Search]

URN etd-0523117-145859
Author Chu-Yuan Huang
Author's Email Address sk156842@gmail.com
Statistics This thesis had been viewed 5605 times. Download 2193 times.
Department Economics
Year 2016
Semester 2
Degree Master
Type of Document
Language zh-TW.Big5 Chinese
Title The Macroeconomic Effects of Minimum Wage Policy´╝ÜThe Case of Taiwan
Date of Defense 2017-06-09
Page Count 59
Keyword
  • labor adjustment costs
  • dynamic stochastic general equilibrium model
  • income inequality
  • minimum wage
  • Abstract In recent years, the minimum wage policy has been widely discussed in Taiwan. This paper constructs a dynamic stochastic general equilibrium (DSGE) model that investigates the macroeconomic impact of raising the minimum wage in Taiwan. The results show that the policy mitigates income inequality, but it has overall negative effects on consumption, investment, labor, tax revenue, and output. The analysis shows that the policy reduces consumption and increases labor for high-skilled workers, which lowers their welfare. On the other hand, raising minimum wages increases consumption of low-skilled workers, which in turn increases their welfare. In addition, we compare the macroeconomic effect of the minimum wage policy and the direct subsidy policy to low-wage workers. It finds that the subsidy policy has the same qualitative effect as raising minimum wages on reducing income inequality. Its overall negative macroeconomic effects, however, are less severe than raising minimum wage policy on consumption, investment, labor, tax revenue, and output. Therefore, the paper concludes that raising the minimum wage policy may not be the best option to address low wage or income inequality issues.
    Advisory Committee
  • Chang, Juin-Jen - chair
  • Yang, Chih-Yu - co-chair
  • Shu-Chun S. Yang - advisor
  • Files
  • etd-0523117-145859.pdf
  • indicate access worldwide
    Date of Submission 2017-06-27

    [Back to Results | New Search]


    Browse | Search All Available ETDs

    If you have more questions or technical problems, please contact eThesys