Why in Taiwan the Salary is not Rising?
In the past 15 years, Taiwan’s economic development has a very peculiar phenomenon, that is, real GDP continues to grow, but the real wages have stagnated.
Many people believe that this is because the employed workers do not enjoy the fruits of economic growth.
But is this really the case? Yang Zikai, a researcher at the Institute of Economics of the Academia Sinica, and his research team, after analyzing the actual data, finally broke through the blind spot!
Yang Zikai, a researcher at the Institute of Economics of the Academia Sinica, and his research team (note: the co-author is Lin Yijun of the Central Bank.) After analyzing the actual data, it is found that the real GDP can only reflect the domestic production quantity and does not represent the national consumption capacity. In particular, in the past fifteen years, Taiwan’s economy has relied on the export of “communication and communication industry”, and the prices of such products have become lower and lower under global competition. The masses of civilian products that the masses want to consume are getting higher and higher due to the “rising of crude oil prices”. The growth of “real wages” has fallen sharply behind the growth of “substantial GDP.” To break through the level and strengthen the development of industries based on talent value is one of the directions to change the existing predicament.
In the past fifteen years, Taiwan’s economic development has a very peculiar phenomenon, that is, real GDP (that is, real output) continues to grow, but the real wages have stagnated. According to the information of the General Accounting Office, before 2002, the real GDP per working hour was similar to the real wage growth per working hour. However, after 2002, real GDP continued to grow, and the growth of real wages was almost stagnant.
Figure 1. Before 2002, the growth trend of labor productivity and real wages was actually in a step-by-step manner. However, after 2002, labor productivity still grew, and real wage growth was almost stagnant or even negative.
Many people think that this phenomenon represents that the proportion of the fruits of economic growth allocated to “employed workers” is less and less, that is, the proportion of “remuneration of employed persons” to “gross domestic production” (that is, the “share of labor compensation”) declines.
However, after analyzing the actual data, it shows that the share of labor compensation has indeed declined since the early 1990s, but during the period when the real wages began to stagnate, that is, after 2002, the downward trend was stopped, and in the percent Forty-two fluctuations. (Figure 2) In other words, the reason for the recent real GDP growth in Taiwan and the stagnant real wages in Taiwan may not be the decline in the share of labor compensation.