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Dynamics and sources of wage inequality in Taiwan: Evidence from employer‐employee matched data

Po‐Chun Huang et al.

Economic Inquiry2026https://doi.org/10.1111/ecin.70044article
AJG 3ABDC A
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0.50

Abstract

This paper studies the decline in wage inequality in Taiwan from 2004 to 2019 using administrative employer‐employee matched data and the Abowd–Kramarz–Margolis (AKM) framework. Unlike the U.S. and Europe, Taiwan experienced an 8.4% drop in wage inequality, driven largely by reductions in within‐firm disparities. Minimum wage hikes likely contributed to this compression, as lower‐tail inequality declined due to faster earnings growth among low‐wage workers, while upper‐tail inequality remained relatively stable. AKM estimates, robust to bias correction, indicate that firm‐specific wage premiums account for a small share of inequality, while worker‐firm sorting has become increasingly important in explaining wage dispersion.

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https://doi.org/https://doi.org/10.1111/ecin.70044

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@article{po‐chun2026,
  title        = {{Dynamics and sources of wage inequality in Taiwan: Evidence from employer‐employee matched data}},
  author       = {Po‐Chun Huang et al.},
  journal      = {Economic Inquiry},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1111/ecin.70044},
}

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Dynamics and sources of wage inequality in Taiwan: Evidence from employer‐employee matched data

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0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

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