TAIWAN TEMPORARY WORKERS AND LABOR MARGINALIZATION IN THE CONTEXT OF SEGMENTED LABOR MARKET, 1991-2010

Abstract

From the perspective of segmented labor market theory, this paper aims to provide evidence-based study on temporary workers and labor marginalization in Taiwan in the period of 1991-2010. New phase of industrial restructuring and monopsony dating back to the early 1990s serves as the main force in shaping Taiwan labor market which is characterized by new type of segmented labor market. The paper demonstrates (1) temporary workers in general and foreign contract workers in specific, and (2) status of labor marginalization by using composite indicator derived from wage gains and working load. Main findings are: (1) because of deindustrialization, manufacturing offshoring, and new business monopsony, temporary workers including foreign contract workers and low-workload low-pay workers are surging, being mostly selective of females, the youth, the less educated, and workers in traditional manufacturing and electronics; (2) in specific, based on existing research, the paper characterizes the interaction of immigrant contract workers with Taiwan native-born workers. The paper concludes that entrapped temporary workers and labor marginalization are polarizing Taiwan labor market and growing foreign contract workers who are entrapped in secondary labor market too are associated with enhancing labor market segmentation effect. Tensions surge sharply in secondary labor market and feelings of relative deprivation among workers in secondary labor market rise sharply. Thus profound and insightful institutional changes in labor market are urgently required.