The purpose of this study is to examine how the accession to the WTO affects Taiwan’s labor market. The data are taken from 1996-2007 Employee’s Salary Survey of the DGBA (Directorate-General of Budget, Accounting and Statistics). Each year’s wage elasticity of labor demand is estimated for the 2-digit industry.
The empirical results show that the accession to the WTO tend to raise the wage elasticity of labor demand, especially for the labor-intensive industries.