Campus Units

Economics

Document Type

Article

Publication Version

Published Version

Publication Date

Spring 2017

Journal or Book Title

Journal of Human Capital

Volume

11

Issue

1

First Page or Article ID Number

1

Last Page

34

DOI

10.1086/690235

Abstract

Between 1990 and 2014, Taiwan increased the college share of its labor force from 7 to 32 percent by converting junior colleges to 4-year colleges. Such a rapid surge in skill supply should suppress college wages and lower wage income inequality. Instead, wage inequality rose 7 percent since 1978. We show that the surge of weaker college graduates made them poor substitutes for better-trained college graduates and led to an increase in wage inequality within skill groups. Rising wage inequality due to increased variation in the quality of young college graduates added another source of inequality to the Taiwan labor market. The Taiwan case shows that increasing college access alone will not lower inequality.

Comments

This article is published as Keng, Shao-Hsun, Chun-Hung Lin, and Peter F. Orazem. "Expanding college access in Taiwan, 1978–2014: effects on graduate quality and income inequality." Journal of Human Capital 11, no. 1 (2017): 1-34. doi: 10.1086/690235. Posted with permission.

Copyright Owner

The University of Chicago

Language

en

File Format

application/pdf

Working Paper

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