| dc.description.abstract | In 2010, Taiwanese government has reduced profit-seeking enterprise income tax from 25% to 17%, and one of the main purposes of this policy is to make Taiwan become a relative competitive country in tax for investment than neighboring countries.
Theoretically, lower enterprise income tax may induce higher investment, leading to higher capital per worker, higher worker productivity, and eventually, rising wages if workers are paid by their marginal product.
To examine the incidence of enterprise income tax reform in 2010 on wages, this study uses 2006~2014 financial reports of Taiwan listed electronics companies drawn from the data bank of Taiwan Economic Journal (TEJ). The results shows that no matter we take the whole electronics industry, or separately take Semiconductors Manufacturing; Electronic Parts and Components Manufacturing; Communication Network Industry as sample, average wage significantly increases after the tax reform. It suggests that for the electronics industry, decreasing profit-seeking enterprise income tax results in increasing the average wage, as the expectation of Taiwanese government. | en_US |