WSEAS Transactions on Business and Economics
Print ISSN: 1109-9526, E-ISSN: 2224-2899
Volume 13, 2016
PLS Modelling on Determinants of Low Pay in Taiwan?
Authors: Yi-Hui Chiang, Hsien-Li Lee
Abstract: As an export-oriented economy, the fruits of Taiwan’s economical growth do not seem to reflect higher wage levels. What determinants account for low pay (wage levels) in Taiwan? This study proposed a partial least squares (PLS) model on wage determinants, testing ten hypotheses derived from with macro-level monthly data during the period of 2000/01-2014/06. The results found that there are seven paths regarding Taiwan’s wage levels. Exports and trade is the key and direct determinant of average regular wage levels and average working hours; the number of college or university graduates is an important one regarding average first regular wage levels in Taiwan. The results provide insight for schools, enterprises and government authorities.