In 1950 nearly three-quarters of Taiwanese lived on farms, and most farmers were poor. Land reform and industrialization raised farming income, and many Taiwanese moved to cities, which developed a large middle class. By 1977 Taiwan's cities were home to nearly half of the country's people. The cities' population continued to grow, but new residents brought new problems: insufficient housing and schools, inadequate water supplies and sewers, heavy motor traffic, and air pollution.
As Taiwan's economy developed, increasing numbers of people attended college. The middle class grew as many more people became involved in business, engineering, construction, law, medicine, accounting, and other occupations of a modern economy. The new middle class became the backbone of the industrialization and modernization movement.
Women especially benefited from the new economy and growing opportunities. In traditional Chinese society women had almost no power in the government, the economy, or even within their own homes. The Taiwanese government legislated sexual equality, but the laws alone did not give women the same opportunities for education and jobs that men had. After the government began building schools, however, education and employment opportunities for women improved dramatically. Sexual equality moved closer to being a reality.
In 1950 Taiwan had no organized government system of social services. Soon, however, the national government established a workers' insurance program that helped to create job-placement offices and unemployment and disability payments. Later the government established children's health care programs, family planning, disability insurance for government employees, pensions for the elderly, and income for persons with disabilities. During the 1990's the government passed laws helping workers and employers negotiate with each other.
Taiwan also had no health care system in 1950, and trained physicians and hospitals were rare. The government began to establish clinics in the countryside and hospitals in towns and cities. The health services gave special attention to preventing the spread of infectious diseases and inspecting food and water supplies. By the 1990's the average life expectancies of Taiwanese had risen to 71.9 years for men and 77.9 for women. In 1995 the government began providing free health care to all citizens.
In 1968 the government extended compulsory education from six years to nine years. It also increased the number of professional schools, universities, and graduate schools. The universities took on much more advanced research, particularly in technology, offering advanced degrees in increasing numbers of subjects. Students continued to study traditional Chinese culture, but they also increased emphasis on Western culture. The government sent many graduate students abroad for advanced study, and later they also sent undergraduates abroad. The universities also invited foreign scholars to teach in Taiwan.