In this paper empirical evidence is presented based on a recent nationwide survey conducted in Taiwan concerning industrial responses to rising labor costs and shortages. Four types of corporate strategies are discussed, namely, the recruitment of part-time workers, the importation of foreign workers, the provision of training for employees, and the substitution of labor with automation. It is found that all four strategies are increasingly being practised, particularly the employment of foreign workers as a short-term solution in the processes of industrial restructuring.
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