A1297
Title: Hourly versus monthly minimum wages and employment adjustment: Evidence from Taiwan
Authors: Po-Chun Huang - National Chengchi University (Taiwan) [presenting]
Abstract: Minimum wage increases in Taiwan are examined using two-year matched panels from the 2012-2020 Manpower Utilization Survey, where separate monthly and hourly wage floors coexist and the hourly minimum has risen faster since 2016. By comparing directly affected workers with higher-wage comparison workers before and after larger minimum wage hikes, the analysis finds that minimum wage increases raise wages for affected workers, with little evidence of reduced continued employment. Relative to control workers, affected workers become more likely to be paid monthly, less likely to work part-time, and more likely to work longer hours, consistent with substitution away from hourly-paid and part-time arrangements toward monthly-paid jobs. Complementary county-level exposure estimates show similar patterns: more exposed counties experience stronger wage growth at the lower tail, with little evidence of aggregate employment loss, and low-wage workers exhibit similar contract adjustments.
