Education is gradually moving towards the M-type

Chapter 2、The theory of globalization and human capital flow

4.4 China

5.1.3 The aspect of the high-level talented people

5.1.3.2 Education is gradually moving towards the M-type

departments unable to support the new industries international, interdisciplinary and cross-industry talents. Most students are poor in the foreign language skills.

The average of TOEIC scores⁸³ of China, Korea Taiwan and Japan in 2011 is 710, 626, 542 and 510 individually of comparative disadvantage on international business and trade competition. The industries reflect the current teacher education system that the courses have been unable to match the practical needs and the inadequate investment of the enterprises in the cultivation of high-level personnel should be improved in the future.

5.1.3.2 Education is gradually moving towards the M-type⁸⁴

The process of Taiwan's economic development and the economic miracle from the popularization of education, improved rapidly due to the equal opportunities in education as well as the quality of the labor force. In the long time, education is the major pipeline to people who will upgrade their life quality and income, but this situation has been changed. The children of wealthy families has become the mainstream of the National Universities and the children of poor families are concentrated in the private universities with high tuition fees, poor equipment and the unfair teaching opportunities that are resulting in uneven distribution of human capital and the deterioration of income distribution. Meanwhile, the government was in order to compete for the World University rankings. The Ministry of Education expanded the "Aim for the Top University Plan（邁向頂尖大學計畫）⁸⁵"

83 中國時報，《多益成績 626：542 數字會說話韓國英語比台灣好》，2012 年 10 月 6 日。

84 遠見雜誌，《從大陸巨富的外移看台灣教改》，2012 年 1 月。

85 As to the plan of the development of world-class universities and top research center, the Ministry of Education will fund a five-year NT $ 50 billion subsidy major universities to become world-class institutions, research centers program, called five fifty billion plan, a total ofdivided into two sessions, during the execution of 2006-2010, known as the first of five fifty billion plan. Since 2011, fifty billion plan to start the second period of five years, the plan name changed to "Aim for the Top University Plan".

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expected to grant the 12 major universities for fifty billion special budgets in the five years to at least one university into 100 of the World University rankings since 2006. In 2012, National Taiwan University has successfully squeezed into one hundred of the World University Rankings rating as the 80 in the world. This policy was only focus on the famous schools, but ignored the private schools. The subjects are only focus on Science, but ignored Humanities that will sacrifice the interests of students and emphasis on a small number of top schools. Moreover, it will be expanding the gap between the public and private universities of higher education. Those are hurt the education system because the education resources are concentrated in a small number of elites that spend of the majority of the interests of other students to make the adverse social mobility and deprive others of the equal right of education.

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Section 2、Talents Maintaining

After the revolution and opening up of China in 1987, the plants and equipment of Taiwan enterprises shifted to China gradually outward in the huge "Magnet Effect" of the China market that caused by the middle-level managers representing the intellectual, creative, professional or technical personnel facing the outflow. Facing the Human force, capital and technology over relying on China, the impact of Taiwan's industries faced of industry relocation coupled with limited the domestic career development and salary growth that leading a "Brain Drain" phenomenon occurs.

Due to Taiwan's international environment insufficient, the salary conditions cannot be competitive with the neighboring countries that make the overseas hi-tech students are unwilling back to Taiwan coupled with the mid-level government officers early retirement or conversion of the workplace that resulting experience cannot be heritage. Those factors enhanced the "Brain Drain". According to the statistics⁸⁶, the number of the white-collar out of Taiwan is every year 2-3 million people, Taiwan has become a net exporter of white-collar manpower due to the "Brain Drain" and serious human faults, the policy of talents maintaining will be stated as follows.

5.2.1 The aspect of the basic level talented people

When Taiwan traditional industries⁸⁷ complain that young people do not like to do the "dirty, dangerous, high-labor-intensive (3D industries⁸⁸)", Taiwan has signed a working holiday agreements⁸⁹ with New Zealand, Australia and other countries. A

86 The term White-collar Worker refers to a person who performs professional, managerial, or administrative work, in contrast with a blue-collar worker, whose job requires manual labor. Typically white collar work is performed in an office or cubicle.。

87 NOWnews，《打工旅遊變淘金賺錢？澳洲湧入大量台灣青年》，2012 年 8 月 21 日。

88 The 3D industries mean the industries of dangerous,dirty, and difficult characters。

89 東森電子新聞，《打工度假議題熱馬總統：我上任後新增 5 國可去》，2012 年 9 月 15 日。

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group of young people flocked to Australia⁹⁰ in the 3D industries or to France as foreign mercenaries⁹¹ that set off the trend of working holiday overseas recently. On the other hand, the workers are shortage in Taiwan that still cannot find the employee as the plumbers starting salary of NT 40,000 dollars⁹².This was a paradoxical phenomenon and explored the main reason by the low salary.

According to the statistic data of Accounting and Statistics Directorate-General of Budget⁹³ in January-August 2012, the average salary of $ 47,247 after deducting the consumer price index rising in real terms that the average salary of $ 43,514 with the new low from 1998.A monthly salary of the white-collar workers were back to 14 years ago. The average monthly income is from $ 50,390 in 2001 to $42,870 this year for the bachelor degree worker⁹⁴. In 2011, the college graduates starting the salaries of $26,577 have shrunk to $885 compared to 13 years ago. The diploma is inversely proportional to the income, which is ironic phenomenon. This younger generation feels helplessness of the jobs by the fears of low pay, hard work and no future, not only caused by people relative deprivation, but also because of the series of the corporate layoffs or unpaid leave caused by the economic downturn. Thus, the students in colleges begin a series of candidates to various government exams in order to avoid unemployment and to find steady work and reject the civil labor that causing the numbers of 2012⁹⁵ registrations and enrollment of government official exam hit a highest record. These are not good phenomenon either in the individual or in society.

90 今週刊，《我是台勞、我來賺錢》，2012 年 9 月 17 日。

91 民視新聞，《台男任法籍傭兵年薪 150 萬》，2012 年 9 月 23 日。

92 大紀元，《不屈就北市年缺 6000 水電工》，2012 年 9 月 15 日。

93 Directorate-General of Budget, Accounting and Statistics.

94 天下雜誌，《教授拼業績》，2012 年 10 月 3 日，頁 112。

95 www.moex.gov.tw

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5.2.2 The aspect of the mid-level talented people

5.2.2.1 The impacts would be a tremendous in the industries

The brain crisis getting serious in Taiwan, the president of Academia Sinica in August 2011 published the Declaration of the talents. Chung-Ming Kuan, the minister without portfolio of the Executive Yuan, warned that Taiwan's human resources would be exhausted if it is not actively resolved that would become the third level countries within 3-5 years. In order to understand the problems met by the enterprises conducted by the talents that the 546 questionnaires were investigated by the 1111 Job Bank⁹⁶ through the internet from August 20 to August 31, 2012.

The results showed that 77% of companies have felt the trend of "talent shortage", in which the fields of the traditional production/ manufacturing, the people's livelihood/ services and business-related services have the deepest influences. The 86% of the respondents found it difficult of the talent strategies because of the high flow rate of the talents (49.45%), the low salaries generally (32.97%), the shortage of talents (28.57%) and grass-roots human resources hard to find (24.18%). The most lack of the talent fields are technical/junior officers (53.3%), business sales (28.02%) and R&D researchers (12.64%). The enterprises hope most that the government will strengthen the technical and vocational education (28.57%) or foster the industrial talents (25.82%) in order to address the current lack of professional talents plight. The manufacturers hope that the government will provide the excellent overseas professionals return plan (8.79%)

96 1111 人力銀行網路問卷調查，《高階難留?! 基層難求?!企業人才困境調查》，8 月 20 日到 8 月 31 日，

有效樣本數為 546 份。

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to enhance the human qualities of the domestic job market, driven by the overall competitiveness of the country and industry.

Facing of two major problems including the massive outflow of high-level human and the basic technical labor are serious shortage in Taiwan. The high-level manpower is the excess due to the low domestic salary level combined with the labor protecting policies of the government that prevent the foreign high-level personnel working in Taiwan, resulting in Taiwan talents only moving out without moving in. As to the primary manpower shortage, the upgrading of technical and vocational schools in the past decade toward academic development, resulting in the differences of learning and using that training a large number of highly educated generalists, but leading to a serious shortage of domestic low-level or technical professionals. Those indicated that the enterprises complain about the job seekers lack of the professional knowledge, the serious shortage of industrial talents and the paradoxical phenomenon of the high unemployment rate of the highly educated.

5.2.2.2 Increased the willingness of overseas work 5.2.2.2.1 Overseas work

To understand the current situation and experiences of white-collar workers working overseas, the 1,488-internet questionnaire survey of office workers overseas work experience designed by the 1111 Job Bank⁹⁷ from September 8 to September 22, 2012. The results indicated that 77% of surveyed office workers intend to work abroad because of expanding personal

97 1111 人力銀行網路問卷調查，《金飯碗鐵飯碗不敵「洋飯碗」?》，9 月 8 日至 9 月 22 日，有效樣本數為 1,488 份。

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horizons, developing the larger opportunities and considering the wages and benefits. The 38% of them have been successful in acquiring overseas working experience for an average of 4.37 years. The 94% of the overseas salary is higher than Taiwan and the 62.74% is higher than the average payment. The main countries working overseas are mainland China, United States and Singapore. The 61% of overseas workers are in the Taiwan enterprises that most of them are with doctoral degrees and the master degrees as the second rating. That showed the situation of mass exodus of the highly educated people does exist. In the aspect of the industry analysis, the fields of the highest proportion of overseas jobs are production or manufacturing, information/ technology and trade/ circulation in this indirect proof of the loss of many white-collar workers. The foreign workplaces have the advantages of the well salary structure, more respect for professional and greater respect for private time and space.

The average salary in Taiwan has significantly been behind the neighboring countries for many years that is difficult leaving human talents, for example, starting from NT $60,000 for Singapore freshman, NT $70,000 for Korea, NT $32,000 for Hong Kong and $22,000 for Taiwan. The average salary of Taiwan is far behind the neighboring countries. The structure of workplace wage in Taiwan is relatively low, compared to the advanced countries coupled with the ubiquity of higher education. Furthermore, the structures of industries cannot accommodate a large number of highly educated people and businesses to provide resources for training and development space that making the Taiwan office workers are willing to work

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abroad to enhance the talents training in Taiwan large migrating to the Asian neighboring countries. Singapore, Hong Kong, China and Korea conducted comprehensive poaching talents in the fields of education, science and technology, health, sports, aviation⁹⁸ and other industries of Taiwan. Thus, Taiwan is the aftermath of talent "comprehensive drain" crisis, as the

"talent-exporting countries for the neighboring countries. When high-quality Brain Drains while the domestic business owners said that being unable to recruit talent that the key problem is the issue of the payment. If the companies were willing to use reasonable wage to employ the currently higher education talents, the phenomenon of talent shortage might be improved.

5.2.2.2.2 West-ward working in China

With the signing of ECFA, the cross strait directly flights and the airline cut prices that the Chinese tourists and students can enter Taiwan due to the cross-strait policy. For the cultural, economic and trade exchanges between the two sides, the Chinese market has a "Magnet Effect" on the global capital and talents that the job market is also set off a wave of cross-strait. “Human capital required interaction effect" has become a key cross-strait cooperation in the future. In this trend of west-warding to the mainland China, how are the Taiwan office workers willing to work?

In order to understand the west office workers work on the mainland intention, 1,173 internet questionnaire survey of "The office workers

98 Civil Aviation Pilots Association statistics, " 25 of the Taiwan Aviation Pilots exodus in the 4 months "《4 個月 25 人台灣機師大出走》。

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west-ward willingness⁹⁹" designed by the 1111 Job Bank from May 10 to May 24, 2012. The results showed that 77% of the respondents of the office workers intentionally westward to develop in China. The reasons are optimistic about the potential of the mainland market, increasing the personal working experience and developing an international perspective. The most popular types of works are management, business and trade, manufacturing, the basis for the selection of the type of work by "personal expertise/

professional", "optimistic about industry prospects" and "personal interests/

hobbies. The types of office workers staying in China are the main form of long-term assignments and local appointment. The 57% of office workers now on the development in China have no willingness to return. The 74% of office workers work in China for a higher salary increased by an average of NT 370,000.

5.2.3 The aspect of the high-level talented people 5.2.3.1 Populist rule treated equal

In the civil service system, due to the salary structure of the teaching and research system adopted in the public sector, the academic staff salaries are far below the international compensation levels that domestic salary structure is unable to retain the high-level personnel. The Act regulated that payments of the Legal Persons shall not be more than ministerial levels, coupled with the long-term "populism" and

"Long for fish by the waterside（臨淵驅魚）" mentality. There is not asked a substantive contribution and the international market compensation levels.

99 1111 人力銀行網路問卷調查，《上班族西進意願調查》，5 月 10 日至 5 月 24 日，有效樣本數為 1,173 份。

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Moreover, the companies are reluctant the reasonable salary of employment in the private sector that Korea, Singapore, China and Hong Kong are aggressive to headhunt with high-paying incentives for our high-tech and financial industry professionals to accelerate high-end "Brain Drain". For the long-term, it will seriously influence our competitiveness.

5.2.3.2 The "Brain Drain" of the academic and technology fields

The Taiwan human hunting companies commissioned by the Chinese enterprises a large amount of money to lure the high-level personnel away, targeting the technology and financial talents. The technology professionals are on behalf of the power that the Chinese technology industries will pay out of five times of monthly salary and not limited amount of the check to attract the Taiwanese talents. They even enlisted the budget of RMB 4.2 billion to lure the entire R&D team away of high-tech industries from Taiwan to transplant to China, such as: headhunting 200 of the former CMO panel talents to the China Hua-xing LED panel plant that causing the "Brain Drain" of the Taiwan LED/IC research and development. In addition to the technology industry, Taiwan academia¹⁰⁰ began to work out of Taiwan. Peking University even hired the professors of the National Taiwan University, National Chengchi University and other schools. The University of Hong Kong even paid five times of the salary in Taiwan and the annual salary is at least U.S. $20 million, plus 50,000 dollars housing allowances a year that such a generous salary and research environment enhanced the Taiwan academic and technology professionals working in China.

100 中天人才孤島系列報導，《大陸五倍薪挖角台灣高階人才大失血》。

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5.2.3.3 Overseas scholars are unwilling to back to Taiwan¹⁰¹

Taiwan lack of resources of the country must be fabricated to create resources that talents are the most valuable intangible assets. It needs to have a strategy and far-sighted plan for head hunting of the international talents and cultivating the local elites. Taiwan's top two economic and academic institutions (National Taiwan University, Department of Economics and the Academia Sinica Institute of Economic Research) issued the world's top thirty graduates of the Department of Economics of the United States with four or five copies of the letter of appointment annually to the international competition for talents, but only one person reported for duty. The main reasons lie on there is gaps of the compensation level and research environment in Taiwan compared to the other countries. Asian countries are starting to increase the salaries of overseas scholars and the open the policies on professional and technical immigrants leading form the United States recent years.

The starting salary of Singapore professor is more than fourty percent than Taiwan in 1994 but has become more than three times now. The top talents wish with a group of the top supporting resources, world-class salary, and the advanced research facilities. The issues presented that students could not enter the top of Department

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