Effect of Participation of Foreign Migrant Workers in Labour Market on Native Workers: Evidence Based on Change Noticed in College Premium in Taiwan ROC

Lai, Yu-Cheng

doi:10.1080/1226508x.2019.1571429

Cited by 3 publications

(3 citation statements)

References 18 publications

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“…In stage I, we estimated employment choices for workers in HRDR (1) and LRDR (2) firms in HOFDII plus other workers in LOFDII and non-workers. Considering studies that used a multinomial logit method (see Lai and Sarkar, 2013, 2017, 2022b; Lai, 2019), we applied a similar approach to measure the effects of WSJ and PTW on employment choices in the HRDR industry and built Equation 1. In Equation 1, we used the multinomial logit method to estimate the probability of a skilled woman or man getting employed in a given industry.…”

Section: Estimating the Effects Of Hofdimentioning

confidence: 99%

The impact of the US–China trade war on Taiwanese firms' R&D investment and outward investment to technologically advanced countries

Lai,

Sarkar

2023

IJM

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Purpose The purpose of this paper is to understand the impending relationship between the impact of the US–China trade war on Taiwanese firms' spending on R&D and their offshore investment in technologically advanced countries (TAC), the authors examined if changes in these firms' R&D ratios and the growing presence of skilled workers in Taiwan's labour market during the trade war have affected their offshore investments in TAC.Design/methodology/approach Using a model built on pooled cross-sectional time-series data from 2012–2019, the authors examined whether a change in R&D ratios of domestic firms in Taiwan and the growing presence of skilled workers in Taiwan's labour market have affected the offshore investment by these firms during the trade war. Using data from the Manpower Utilisation Survey, the authors applied differences–in–differences–in–differences and differences–in–differences–in–differences–in–differences estimation methods and found that the trade war indeed gave a boost to Taiwan's job market, particularly for skilled workers.Findings From the estimation results, the authors noticed a rise in employment opportunities alongside a decline in the earnings of skilled workers in industries where more firms have spent on R&D as well as invested in offshore operations. However, firms in Taiwan that had not heavily spent on R&D from industries where investment in foreign operations was otherwise high have also attracted skilled workers during the trade war.Practical implicationsAn in-depth analysis of the impact of the trade war on domestic firms' spending on R&D and their investment in offshore operations in TAC should be helpful to policymakers interested in understanding the effects of the trade war and subsequent changes in firms' spending on R&D on labour market outcomes. If changes in the R&D ratios and a steady supply of skilled workers influenced the outflow of Foreign Direct Investment (FDI) to TAC, this insight could be helpful for those devising policies and measures to curb the impact of the trade war on domestic spending on R&D.Originality/value The study findings not only provide broad lessons to policymakers in Taiwan, but the country case study can guide growing economies that are equally careful while perceiving trade war as a significant deterrent to domestic R&D spending and the outflow of FDI.

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Section: Estimating the Effects Of Hofdimentioning

confidence: 99%

The impact of the US–China trade war on Taiwanese firms' R&D investment and outward investment to technologically advanced countries

Lai,

Sarkar

2023

IJM

Self Cite

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“…In Stage-I, we estimated employment choices in large firms from FDIII. Given studies where the multinomial logit method was used (see Lai andSarkar, 2013, 2017), we used it to measure the impact of SEW and HLUI on employment in large firms. Dependent variable x is a categorical variable, indicating workers' employment choices.…”

Section: Labour Unrest and Labour Quality In Taiwanmentioning

confidence: 99%

“…We made three estimations concerning changes in W and H: (1) both W and H improved when SEW's demand increased more than their supply; (2) W had not changed when demand and supply increased or (3) both had reduced when demand fell as much as supply increased.where repeated cross-sectional data like MUS data were used, the differences-in-differences (DD) estimation method (see Bertrand et al ., 2004) [8] was commonly used. However, Zveglich and Rodgers (2003), Lai and Masters (2005), Kan and Lin (2011), Sarkar and Lai (2009), Lai and Sarkar (2013, 2016, 2022) and Lai (2019) adopted DDD to measure the effects of labour standards on labour market outcomes. We too, adopted it to control changes in productivity characteristics across workers in large and small firms that witnessed/not witnessed enforcement of LPL and removed sample-selection bias.…”

Section: Estimating Effects Of Stock Of Fdimentioning

confidence: 99%

Impact of labour unrest and skilled workforce in host country on inflow of foreign direct investment – a case of Taiwan, ROC

Lai

Sarkar

2022

IJM

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PurposeIn this paper, the authors examined the changes in labour unrest and labour quality brought by high labour standards over a considerable period in Taiwan. Then, the authors studied the role of these changes in predicting the inflow of foreign direct investment (IFDI) in the country. To test the role, the authors measured the differences in effects of the two changes on wages, working hours and employment opportunities of skilled female and skilled male workers in FDI-intensive and non-intensive industries.Design/methodology/approachUsing a model built on pooled cross-sectional time-series data from 1999 to 2012, the authors measured the effect of changes in labour unrest and the presence of skilled workers on the net inflow of FDI. Using data from the Manpower Utilisation Survey (MUS), the authors applied differences–in–Differences-in--ddifferences- (DDD) and differences–in–Differences-in-ddifferences-in--differences- (DDDD) estimation methods to test the effect of changes in labour unrest and labour quality on three labour market outcomes, namely wages, working hours and job opportunities of skilled workforce.FindingsIncreasing labour unrest affected the employment opportunities of almost every unemployed person seeking skilled jobs in Taiwan. When the authors compared the adverse effect of high labour standards on employment opportunities and working hours, the authors found women looking for skilled jobs in foreign-owned firms to be the worst affected. Besides, foreign firms paid different wages to skilled educated men than what foreign firms' domestic counterparts paid to skilled educated men employed in Taiwanese firms.Practical implicationsAn in-depth analysis of changes in labour unrest and presence of skilled workers because of high labour standards and the extent to which such changes helped the nation to attract FDI should be useful to policymakers interested in understanding the impact of legislative measures and policy reforms on labour market outcomes across industry types, which matter to foreign investors. If changes in labour unrest and labour quality influenced the inflow of FDI more to firms in one set of industries than the others, the same should have a bearing on revamping of future enactment and enforcement in Taiwan.Originality/valueCurrent study findings would not only provide broad lessons to policymakers in Taiwan but findings of the authors' country case study should be able to guide growing economies that are equally careful whilst raising the labour standards as most fear that high labour standards can deter inflow of FDI because of increasing labour cost.

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Sociocultural adaptation and job satisfaction as mediators between cultural competence and intention to stay among Vietnamese workers in Taiwan

Tsang

Nguyen

2023

Humanit Soc Sci Commun

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This study employs a moderated mediation model to investigate the role of sociocultural adaptation and job satisfaction in the relationship between cultural competence and intention to stay. It also considers the moderating function of local language proficiency and length of residence. A survey was conducted among Vietnamese migrant workers employed in Taiwan’s manufacturing industry under the labour export programme. This resulted in a valid dataset of 636 respondents, which was used to test the proposed hypotheses. The findings demonstrated that sociocultural adaptation and job satisfaction fully mediated the relationship between cultural competence and workers’ intention to stay. Moreover, local language proficiency and length of residence were found to substantially strengthen the positive relationship between cultural competence and sociocultural adaptation, but not to moderate the association between cultural competence and job satisfaction. Theoretically, the study contributes to the literature on psychological and behavioural management by examining how migrant workers’ job satisfaction and sociocultural adaptation are related to the association between cultural competence and intention to stay. Practically, the study addresses current concerns regarding the rate of job retention among migrant workers participating in labour export programmes. Its findings provide policymakers and employers with additional evidence to improve and effectively maintain their foreign labour force. It is recommended that both sending and receiving governments implement appropriate and effective management policies to manage the low-skilled foreign labour force.

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Effect of Participation of Foreign Migrant Workers in Labour Market on Native Workers: Evidence Based on Change Noticed in College Premium in Taiwan ROC

Cited by 3 publications

References 18 publications

The impact of the US–China trade war on Taiwanese firms' R&D investment and outward investment to technologically advanced countries

The impact of the US–China trade war on Taiwanese firms' R&D investment and outward investment to technologically advanced countries

Impact of labour unrest and skilled workforce in host country on inflow of foreign direct investment – a case of Taiwan, ROC

Sociocultural adaptation and job satisfaction as mediators between cultural competence and intention to stay among Vietnamese workers in Taiwan

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