In this study, three main objectives are pursued. First, it takes a historical look at the way the wage rate was determined and the important role it played during the period of rapid economic growth in Taiwan from 1952–1981. Second, it reviews the patterns of change found in the economy of Taiwan and of its wage structure. Also, the author makes use of a model developed by Berndt and Christensen (1973) that employs a constant returns to scale translog production function with symmetry imposed to estimate Allen partial elasticities of substitution (AES), price elasticities of demand, and price elasticities of income shares among male workers, female workers, and capital.
