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Different countries have different mechanisms of labor market dualization. In western welfare states, labor market is dualized along with industry sectors. However, the cleavage of insider-outsider in East Asia is emerged in line with firm size. Moreover, the mechanisms of labor market dualization are not only varied across the East Asian welfare states, but also changed over time. This study will use 2005 International Social Survey Programme (ISSP) and the 2008, 2010 and 2012 East Asian Social Survey (EASS) to analyze how the labor markets are dualized along with firm size, and the significance of skills, work-orientation and labor power through the ordinary least squares models of wage among employed workers in Japan, (South) Korea and Taiwan. We found that the wage gaps between large firms and SMEs rapidly increased after the 1990s in Japan and Korea; however, Taiwan did not see a significant change. In Japan and Korea, insiders worked in large companies are not only union members but also having high skills and stable work careers tend to defend wage protection. Therefore, the rights and wage of outsiders are sacrificed. Thus, in Japan, the wider wage gap could be attributed to job types, union membership, and skill types. In Korea, the main factors of labor market dualization based on firm size are low working hours, skill types and atypical workers, but the significance of union membership is weakened by work-orientation and skill types when the Korean government started labor market deregulation in the 1990s to reduce employment security of chaebol workers. In Taiwan, labor power was centralized in large private firms and state-owned enterprises, but its influence did not spill over to SMEs workers. Workers in large private firms and state-owned enterprises have high-general skills and enjoy employment security. Thus, skill types and low working hours are significant in explaining the deepening labor market dualization along with firm size in Taiwan. From 2008 to 2012, non-regular works is deteriorated in Japan and Korea, and it recently became as the main factor of labor market dualization, and skill type is still significant to workers’ wage, but less important than precarious work. In Taiwan, skill type and low working hours are more and more important in explaining the labor market dualization after a series of labor market reforms.
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