Abstract
This paper examines the bonus and wage behavior in Korea and Japan. The bonus-wage ratio in Korea has increased to the level that Japan was at in the late 1950s. It was found that both bonuses and wages in Korea respond to economic conditions to a greater degree than their counterparts in Japan. This finding may reflect the fact that the Korean labor market is much closer to a spot market than to a long-term contract (lifetime employment) market. However, when the “overtime” component of the wage is separately examined, it responds less to economic conditions than do bonuses but responds more than base wages.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Journal of The Japanese and International Economies
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
