Korean Labor Market Research Articles

비교 소득과 한국의 노동시장의 성별 이질성 분석

비교 소득과 한국의 노동시장의 성별 이질성 분석

Labor Market Outcomes of Voucher Based Job Training -Evidence from an Analysis of Job Training Participant Survey in Korea-

This paper investigates how labor market outcomes of voucher based job training differ in terms of employment rates and job quality during the year of 2012-13 in Korea. Using a sample survey of vocational skills development program participants based on administrative data on vocational skills training and registry of jobseekers, this paper empirically tests whether voucher-based job training contributes to promoting labor market outcomes in terms of employment probabilities and job quality obtained since the completion of training programs compared to job seekers in the Korean labor market. Results show that there exists a negative lock in effects of 9 percentage points in employment rates for jobs covered by employment insurance, while for jobs of all sort regardless of social insurance coverage the negative effect is also observed in the short term, which turns positive after about 4 months since training participation. These findings shed light on the recent debates on whether or not the introduction of voucher based system in job training provides more benefits for jobseekers as well as for public service agencies as promised by the proponents of voucher based system in job training.

Technological Progress and Youth Employment in South Korea

ABSTRACTThis paper analyzes the extent to which technology progress and youth employment are related. In doing so, we divide workers into two groups – young workers and old (prime-aged) workers - and then estimate the elasticity of substitution between (physical) capital and workers à la Jaimovich et al. (2013. “The Demand for Youth: Explaining Age Differences in the Volatility of Hours.” American Economic Review 103 (7): 3022–3044) by using the Korean labour market data between 2000 and 2014. Our findings indicate that the elasticity of substitution is greater (or at least not smaller) for young workers than for old workers.

Sex-Specific Impact of Changes in Job Status on Suicidal Ideation.

Background: Around the globe, 800,000 people die from suicide every year. Despite being one of the leading causes of death, suicide remains a low public health priority. Korea has the second highest total suicide rate among Organisation for Economic Co-operation and Development (OECD) countries. Aims: The aim of this study was to explore how changes of job status influence suicidal risk in Korea, which lags behind other OECD countries in job security because temporary and part-time jobs are more prevalent in Korea. Method: We made use of a large longitudinal dataset, the Korea Health Panel (KHP). Results: Our findings revealed that a negative change in employment status increased the risk of suicide, but only for males. Limitations: Some individuals might intentionally change their job status, but the data do not indicate why the job status of an individual changes. Conclusion: These findings provide useful insights regarding the Korean labor market. In particular, tackling the issue of job stability, providing training polices for the unemployed and under-employed, and considering social insurance schemes may help to reduce suicide risk.

INFLATION AND WAGE RIGIDITY/FLEXIBILITY IN THE SHORT RUN

A recent literature uses accurate wage data from payroll records and provides compelling evidence against the conventional belief that nominal wages are downward sticky. This paper provides a unique contribution to this literature by conducting a formal analysis of the role of inflation in cyclical wage rigidity/flexibility. Analysis of payroll‐based wage data from the Korean labor market for the period 1971–2014 finds that the degree of downward nominal wage flexibility is countercyclical, and the countercyclicality becomes stronger during a deflationary, relative to inflationary, recession. This serves as a counter‐example to the conventional theory of cyclical wage rigidity. (JEL E24, E32, J30, J64)

Exports and job creation in South Korea: industry-level analysis

PurposeThe Korean manufacturing sector has undergone structural changes in a transition from labor- to capital-intensive industries. These changes seem to be relevant to the weakening of the export effect on employment that began in 1990. In light of the importance of exports in the Korean labor market, the purpose of this paper is to shed light on the primary reasons why export growth does not lead to sufficient job creation as it did in the past.Design/methodology/approachThe authors first use the growth accounting approach to show that the weakening of the linkage between exports and employment is closely related to the composition of export products, which has changed toward being more labor-saving. An empirical analysis (i.e. first difference A-B generalized method of moments estimator) on the employment effect of exports confirms that as the capital-intensity of exports increases employment effect decreases.FindingsThe main findings of the study can be summarized as follows. First, the reduction in the export effect on exports is highly correlated with changes in the composition of export products. Second, an increase in exports leads to an increase in manufacturing jobs, and the export elasticity of employment decreases as capital-intensity increases. Third, the export elasticity of employment tends to be higher when the export proportion of SMEs’ products is larger.Originality/valueDespite the many literatures on the link between exports and employment, there is no consensus on this topic. However, it is generally agreed that the employment effect of exports has been considerably weakened, compared to that of the past, at least in Korea. Nevertheless, few studies attempt to address why this trend has occurred. In this paper, we focus on the structural factors that are the major cause of the weakening of the virtuous cycle between exports and employment. This allows us to provide valuable information to policy makers who are concerned with developing export policies that are related to effective job creation.

Gender inequality among urban households in South Korea

AbstractDespite female‐friendly advances in the South Korean labour market, significant income differentials have persisted not only between male and female workers but also between urban male and female‐led households. This study examines the link between gender and income inequality using the household survey data for South Korea. Analysis of variance reveals the dispersion effects of gender account for less than 2% of the total variations in income. While the importance of gender in explaining aggregate inequality is surprisingly small, we found robust evidence corroborating the gender gap hypothesis. Controlling for demographic characteristics, the results show that Korean men‐headed households, on average, earn 30% higher income than women‐headed households. At the same time, the estimated discrimination effects suggest that the observed male–female income ratio exceeds the income ratio in the absence of discrimination by 26%. Furthermore, households led by a prime‐age man with 20 years of on‐the‐job experience earn, on average, double the income of households led by a prime‐age woman with similar qualifications. The results suggest that, while gender inequality remains a formidable challenge in Korea, female household heads in the prime age categories are particularly disadvantaged by workplace barriers against women participation.

The Impact of China's Rise on the Korean Labor Market and its Implications

The Impact of China's Rise on the Korean Labor Market and its Implications

Vertical and horizontal mismatches and career mobility: evidence from female college graduates

Using panel data from the 2010 Graduates Occupational Mobility Survey, this paper estimates the incidence and impact of horizontal and vertical mismatches on labour mobility among Korean female college graduates at the early stages of their careers. Unlike most previous studies, this study proposes three types of educational mismatch status: (1) vertically mismatched only; (2) horizontally mismatched only; and (3) both vertically and horizontally mismatched. The findings show that the share of educationally mismatched workers is non‐negligible in the Korean labour market (approximately 30 per cent). However, the data also points to an improvement in job matching over time. Regardless of the type of educational mismatch, the results provide evidence consistent with many previous studies: educational mismatch is significantly and positively associated with job turnover. In particular, vertically and horizontally mismatched workers are more likely to switch jobs than their vertically or horizontally mismatched counterparts. These findings indicate that educationally mismatched graduates are more likely to change jobs—suggesting that educational mismatch can be viewed as an investment in human capital at the beginning of a career.

An Investigation of Five Commitment Dimensions and its impacts on Job Satisfaction and Turnover Intention of the Employees in IT Service Industry

This study investigated the five scales of organizational commitment and its impacts on job satisfaction and turnover intention of IT employees. Existing three component model of organizational commitment including affective, continuance, and normative commitment(AC, CC, NC) has been widely used, especially in the western contexts. However, little attempt has been made to examine the extent to which the three component model is appropriate for Korean employees. Thus, we examined the validity of the existing three component model and developed the two new scales, Benefit-related Commitment(BC) and Relational Commitment(RC) reflecting unique cultural and institutional work values in Korean labor market. More importantly, we investigated the relationships among the five commitment scales, job satisfaction, and turnover intention of IT employees. The results showed strong evidence for the convergent and discriminant validity of newly developed BC and RC as well as AC, CC, and NC among them. Furthermore, the five commitment scales excluding CC and NC were positively related to job satisfaction. Also, all five commitment scales were negatively related to turnover intention. The findings provide theoretical implication for the commitment scales and managerial implication for the employees in IT service Industry.

기술진보와 청년고용 (Technological Progress and Youth Employment)

Korean Abstract: 본 논문은 기술발전이 청년고용에 미치는 영향을 분석하였다. 이를 위해 노동자를 청년층과 중장년층으로 나눈 후 기술발전이 기업의 노동수요에 미치는 영향이 연령별로 차별화되었는지를 분석하였다. 기술발전은 자본 의 효율성을 변동시켜 기업의 노동수요에 영향을 미치는데, 그 효과는 노 동과 자본의 대체성에 따라 크기나 방향성이 달라지므로 각 연령층 노동자 의 자본과의 대체탄력성을 추정하여 비교하였다. 이를 위해 통계청 광업제 조업조사와 고용형태별 근로시간조사 자료(2000년~2014년)를 활용, 산업 간 차이를 식별에 이용하여 생산함수의 주요 모수를 추정하였다. 분석 결 과, 청년노동자는 중장년노동자에 비해 상대적으로 자본과의 대체탄력성 이 큰 것으로 나타났다. 다만 연령별 자본 대체탄력성 차이가 크지 않은 점 을 감안할 때 본 연구 결과는 최소한 기술발전이 청년층 노동수요에 상대 적으로 긍정적 효과를 주지는 못하는 것으로 해석할 수 있다. 도구변수를 활용한 추정, 교육수준, 다양한 연령기준의 적용, 직종별 차이 등을 고려한 강건성 분석에서도 결과는 크게 다르지 않았다. 이러한 분석결과는 기술발 전이 중장년고용에 비해 청년고용의 증대를 가져오기 쉽지 않으며 청년고 용정책이 기술발전으로 인한 노동수요의 구조적 변화를 고려해서 추진되 어야 함을 시사한다. 따라서 취업보조금 등 단순한 청년고용 장려정책보다 새로운 기술을 청년노동자들이 효율적으로 활용할 수 있게 하는 직업교육 강화 등이 청년고용 문제 개선을 위해 더욱 효과적일 것으로 판단된다. English Abstract: This paper analyzes the extent to which technology progress and youth employment are related. In doing so, we divide workers into two groups - young workers and elder (prime-aged) workers - and study how differently technology progress affects demand for different groups of workers. In particular, we estimate elasticity of substitution between physical capital and workers a la Jaimovich et al. (2013) since demand for different groups of labor crucially depends on the elasticity. By using Korean labor market data between 2000 and 2014, we estimate key parameters of the production function by utilizing industry variation observed in the data. Our findings robustly indicate that the elasticity of substitution is greater (or at least not smaller) for young workers than for elder workers. This finding is robust to instrumental variable regression and to different sub-groups of workers, including educational attainment, different criteria for young/prime-aged workers, male workers, occupational groups, and size of the firms. Our findings suggest that policies that help young workers to obtain skills complement to new technology can be more efficient than policies that do not consider structural change of the labor market.

Output cost of gender discrimination in the Korean labour market

AbstractThis study constructs and calibrates a macroeconomic model that explains Korea's glass ceiling and examines the output cost of gender discrimination. The model is based on the span‐of‐control framework in Lucas (1978). It is assumed that the source of the glass ceiling is women requiring more managerial skill than men to be considered for promotion. According to simulation results, without the glass ceiling, besides an increase in the share of female managers, aggregate output also increases by 8.4%. The output gain from a glass ceiling removal policy is monotonic because the number of workers continues to decline while the number of managers increases gradually. This implies that the more effective the policy implementation, the greater the increase in output.

An Analysis of FDI Effects on the Labor Market in Korea

This paper analyzes the effect of foreign direct investment (FDI) on the labor market in Korea, quantitatively and qualitatively. In particular, we measure the routine task-intensity (RTI) index similar to that of Autor and Dorn (2013) to investigate the FDI effect on Korean labor market qualitatively. It is shown that the RTI index is higher in the manufacturing sector than in the non-manufacturing sector; the FDI effect on employment in the manufacturing sector is insignificant but in the non-manufacturing sector, it is significantly positive. Moreover, the FDI effect on per capita labor costs and the share of full-time jobs is significantly positive in both the manufacturing and non-manufacturing sectors. In addition, the FDI effect on the RTI index is significantly negative in the manufacturing sector but is insignificant in the non-manufacturing sector. Finally, an analysis using a propensity score matching technique shows that the employment in foreign-invested companies is higher than that in domestic companies, leading us to think that relatively insufficiently competitive domestic companies are crowded out in the market.

Long-Term Effects of Labour Market Entry Conditions: The Case of Korea

ABSTRACTThis study investigates the effects of labour market conditions at the time of graduation, proxied by the local unemployment rate, on long-term family and labour market outcomes in Korea. The examination yields four main findings. Labour market entry conditions have strong and persistent effects among high school graduates. Male college graduates have a persistently lower probability of working at large firms if the demand for local labour shrinks at the time of graduation. Self-employment can be persistently hampered by adverse economic conditions at graduation. Family formation and childbearing are temporarily affected by labour market entry conditions, especially for less educated women. The first three findings highlight the notable segmentation of the Korean labour market into protected jobs in large firms – mostly part of business groups (chaebols) – and unprotected jobs.

설비자본재 기술진보가 근로유형별 임금 및 고용에 미치는 영향 (The Effect of Investment-Specific Technology Shocks on the Gap of Wage and Employment by Workers′ Skill or Tasks)

Korean Abstract: 일반적으로 임금과 고용의 변화는 경기변동, 노동시장 제도변화, 교육수준 향상 등 노동수요 및 공급에 영향을 미치는 여러 요인의 영향을 받는다. 이중 생산기술의 변화는 생산과정에서의 노동투입 결정에 변동을 가져와 임금과 고용에 영향을 미치게 되는데, 노동력이 다양한 유형으로 구성된 경우에는 이들 간 임금 및 고용 변화에 차이를 가져올 수 있다. 본 논문은 이러한 기술변화 중 설비자본재의 기술진보를 가져오는 양( )의 투자고유충격(investment- specific technology shocks; 이하 IST충격)이 근로자의 근로유형별 임금 및 고용의 격차(비율)에 어떤 영향을 미치는지 중점적으로 분석하였다. 학력별(대졸이상/고졸이하)로 근로유형을 구분(숙련/미숙련)하고, IST충격·숙련편향적 기술충격·숙련편향外 기술충격이 각각 발생할 때 이들 간의 임금격차(숙련프리미엄), 고용격차(상대고용)가 어떻게 변화하는지 알아보았다. 장기제약을 도입한 구조 베이지안 VAR모형으로 투자고유충격(IST충격) 등 각각의 기술충격을 식별하였다. 또한, 본 논문에서 처음 시도된 것으로써, 직업의 직무특성별(반복·정형업무/非정형업무)로도 근로유형을 구분(정형직/비정형직)하고, IST충격·정형직노동 생산성충격·그 외 기술충격이 이들 간 임금격차와 고용격차에 미치는 효과도 분석하였다. 분석결과, 설비자본재 기술진보를 의미하는 양( )의 IST충격은 숙련-미숙련 근로자 간 임금격차는 축소시키고 정형-비정형직 근로자 간 임금격차는 확대시켰다. 다만, 동 충격으로 숙련 및 정형직 근로자의 고용격차는 유의하게 변화하지 않아 고용구조 변화까지는 초래하지 않았다. 이러한 분석결과를 통해 우리나라의 설비자본은 생산과정에서 미숙련근로자에 비해 숙련근로자를, 정형직 근로자에 비해 비정형직 근로자를 더 많이 대체하는 특성을 보이고 있음을 알 수 있었다. English Abstract: This paper aims to assess the effect of investment-specific technology shocks(IST shocks) on the gap of wages and employment between different groups of workers in the Korean labor market. IST shocks can be identified by four long-run restrictions in a Structural Bayesian VAR framework. First, workers are categorized into skilled(college graduates and more) and unskilled(high-school graduates and less) ones by their educational attainment. After each shocks activates, including IST·skill-biased technology·other technology shocks, changes in the Skill-Unskill wage gap(skill premium) and employment differentials are examined. Second, workers are re-categorized into routine(tasked on repetitive and procedural jobs) and non-routine ones by their occupational tasks. By simulating IST·routine-labor productivity·other technology shocks respectively, it is originally checked how the Routine-Nonroutine wage gap and employment differentials will change. This paper shows that positive IST shocks can decrease the Skill-Unskill wage gap and increase the Routine-Nonroutine wage gap. It is also found, however, that positive IST shocks can not drive significant changes in employment differentials by any categorization.

Over-Education Among Doctorate Holders in the Korean Labor Market

Over-Education Among Doctorate Holders in the Korean Labor Market

Labor Market Duality in Korea

Labor market duality is a complex and critical issue for many countries that can lower productivity, contribute to inequality and result in negative externalities. In this paper, I study duality in the Korean labor market and analyze its sources and potential policy options. I find that employment protection legislations and large productivity differentials are the key drivers of Korea’s duality. In addition, applying a general equilibrium search-and-matching model and calibrating it to the Korean economy, I show that well-calibrated flexicurity policies can significantly reduce duality and inequality and raise welfare and productivity. Notably, the introduction of all three pillars—flexiblity, a strong safety net and active labor market policies—is critical for its success. If only one pillar is introduced it can result in negative side-effects and might not reduce duality.

Labor Market Duality in Korea

Labor market duality is a complex and critical issue for many countries that can lower productivity, contribute to inequality and result in negative externalities. In this paper, I study duality in the Korean labor market and analyze its sources and potential policy options. I find that employment protection legislations and large productivity differentials are the key drivers of Korea's duality. In addition, applying a general equilibrium search-and-matching model and calibrating it to the Korean economy, I show that well-calibrated flexicurity policies can significantly reduce duality and inequality and raise welfare and productivity. Notably, the introduction of all three pillars-flexiblity, a strong safety net and active labor market policies-is critical for its success. If only one pillar is introduced it can result in negative side-effects and might not reduce duality.

직장이동행태의 시계열적 추이: 이중노동시장 검토를 중심으로

본 연구는 한국노동패널 직업력(work history)자료를 이용하여 직무의 숙련(skill)을 기준으로 노동시장을 1차(primary labor market)와 2차(secondary labor market)로 구분하고, 기업규모를 추가하여 4가지 시장유형으로 구분한 후 각 노동시장간 전환에 따르는 제약요인을 분석함으로써 우리나라 노동시장의 이중구조(dualism)를 살펴보았다. 분석방법으로는 해자드확률(hazard rate)을 추정하는 기간분석모형을 사용하였다. 분석결과, 첫째, 우리나라는 첫 일자리 배치가 학력수준에 따라 할당되는 경향이 강하였다. 하지만 노동시장 진입이후 학력요인은 일자리 이동에 더 이상 통계적으로 유의하지 않았다. 둘째, 노동시장간 단순 전환율 분석결과에서는 노동이동 결과 2차·중소기업군 시장으로 내몰릴 가능성이 가장 높았고, 상향 노동시장으로 이동이 쉽지 않은 것으로 나타났다. 셋째, 개인과 직업특성이라는 이질성을 통제한 해자드모형 추정결과에서는 모든 모형에서 가 양의 값을 보임에 따라 현재 노동시장을 벗어날 가능성이 희박한 것으로 나타났다. 결과적으로 우리나라 노동시장은 숙련수준과 기업규모별로 상당히 경직적이어서 일자리 이동에 제약이 따르고 일자리 이동을 통해 상향 노동시장으로의 전환이 쉽지 않은 것으로 보인다.This study divides labor market into primary labor market and secondary labor market based on skill of job using work history data of Korean labor & income panel study. We examined the dualism of the Korean labor market by analyzing the constraints on the labor market transition after dividing the market into four types by adding the firm size. The main analysis method is the duration analysis model which estimates the hazard rate. First, Korea has a tendency to place the first job by education level, showing symmetry according to educational background. Second, in the analysis of the simple transition rate between the labor markets, the shift of jobs is most likely to be transferred to the secondary and small business market, and it is not easy to move to the upward labor market. Third, the hazard model estimates that controlled the heterogeneity of individual and job showed that gamma had a positive value in all models and that it is unlikely to escape the current labor market. The Korea labor market is very strict due to the level of skill and firm size, and there is a restriction on the movement of jobs, and it seems that the shift to upward labor market through job transfer is not easy.

Unequal Chance of Obtaining a Secure Job: Marriage Migrant Women in the Korean Labor Market

This study aimed to empirically analyze the magnitude of discrimination within the South Korean labor market between immigrant and native women in light of different employment patterns. Using an extended version of the Oaxaca decomposition method, special analytical attention was paid to the heavy concentration of immigrant women in the informal sector of the labor market rather than the formal sector. The extensive data for the study came from the Korea National Survey of Multicultural Families and the 12th wave of the Korean Labor and Income Panel Study, both conducted in 2009. Overall, the results presented a strong case that immigrant women are more susceptible to discrimination than their native counterparts in terms of obtaining a secure job in the formal sector. After controlling for a range of individual characteristics, a significant proportion of this employment disparity remained unexplained, giving credence to the existence of systematic discrimination endemic in the labor market.