Are There Long-Term Effects on Wages When Graduating in A Bad Economy in Taiwan?

Abstract

Entering labor market during a bad economy can be intuitively connected to worse working experience at the beginning of one`s career, and moreover, the effect would persist for many years to come. We empirically estimate the long-term effect of graduating in a bad economy on wages in Taiwan. The estimation results do show significant evidences of negative long-term effect on wages. Besides, the long-term effects vary across genders and education groups.