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									Amending Underemployment Measurement in Taiwan: An empirical analysis based on AHP approach
Duan Wei Department of Finance, Yu Da College of Business, 168 Hsueh-Fu Road, Chaochiao Township, Miaoli County, 361, TAIWAN E-MAIL: Hsien-Tang Tsai Department of Business Management, National Sun Yat-sen University, 70 Lien-Hai Rd., Kaohsiung 80424, TAIWAN E-mail: Chung-Han Lu* Department of Business Management, National Sun Yat-sen University, 70 Lien-Hai Rd., Kaohsiung 80424, TAIWAN E-mail: *corresponding author ABSTRACT During her transition from a developing country to developed one, Taiwan has enacted and implemented the measures of underemployment from 1977. But fundamental changes in Taiwan’s labor market, employment law, and expansion of higher education have taken place over the past decades. Therefore, overall refinements in underemployment measures are most urgently needs because the current measures have not been modified since 1993 and it is hard to reflect the reality of labor market settings today. The main purposes of the paper are threefold: firstly explored various underemployment alternative measures; secondly decomposed the underemployment issue into three categories, inadequate working hours, low income or working poor, and occupational mismatch to form underemployment decision-making hierarchy; thirdly applied the revised underemployment measures in official manpower survey data to prove the Analytic Hierarchy Process (AHP) approach’s potential as an effective self-assessment tool in evaluating underemployment phenomena. Through a process of determining the prioritization of alternative measures, the AHP model identified the measurement of monthly income rate underemployment should take precedence over others forms of underemployment. The proposed AHP hierarchy not only could demonstrate labor economic researchers and policy makers the way to identify the most appropriate measure(s) to gauge underemployment phenomena within different countries, but also result in firmer foundation for continuous improvement in measuring underemployment phenomena. This study also retrospected to historical labor force surveys data in Taiwan with proposed new measures and found that more workers were affected by inadequate employment situation than by time-related underemployment. Keywords Analytic hierarchy process, Low hours of work, Low income, Occupational mismatch, Underemployment

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