英文摘要
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Education is one of the most decisive determinants of wage income, and the expansion of educational attainment thus should affect wage inequality Because of the lack of a dynamic framework for empirical analysis, there is no consensus so far about the direction of this effect in Taiwan. In contrast to previous studies of income inequality using cross-sectional data, this paper constructs pseudo panel data for full-time male employees from the 1978 to 2001 Manpower Utilization Surveys (TGBAS), and then integrates this with the analytical frameworks pro— vided in Deaton and Paxson (1994) and Fei et al. (1979). Then it decomposes both wage and schooling inequality into age effect, cohort effect, and year effect. Results show that, though schooling inequality is declining for younger cohorts, life-cycle profiles of wage inequality are not significantly different across most cohorts. This fact is mainly explained by the increase in the rate of return to schooling which exactly offsets the effect of decreasing schooling inequality
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