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http://dx.doi.org/10.5392/JKCA.2010.10.9.387

Job Selection, Separation, and Wage Level of SME Workers: based on a Follow-up Survey on Recent College Graduates  

Park, Jae-Min (건국대학교 경영대학 기술경영학과)
Publication Information
The Journal of the Korea Contents Association / v.10, no.9, 2010 , pp. 387-398 More about this Journal
Abstract
Recently SMEs(small and medium enterprises) in Korea have experienced severe labor shortages. In particular, college graduates avoiding SMEs are widely spotted. According to previous studies, the main causes of the evasion by college graduates are the inferior working environment and low wages. Some studies also state that SME workers experience discrimination. However, most studies have focused only on unemployment issues of the young graduates. In this research, the results of follow-up surveys on the employment status and job conditions of recent college graduates was linked as a panel data, and the performance of the graduates was analyzed. Based on the analysis, we found college graduates who are employed SMEs are likely to have their initial career fixed to the SMEs. Second, the job separation records of the young SME workers does not show positive labor market performances such as upward movements or wage increases, and the process itself turned out to be entailed frequent separation. Third, the inferior wage level at SMEs and the fact that this effect is cumulatively amplified has been a key factor for evading SMEs. Thus, it is difficult to say that the early-stage careers in SMEs are constructive in future career development. On the contrary, the early careers at SMEs result in lower labor market outcomes, and frequent job separation.
Keywords
SMEs; College Graduates; Job Separation; Labor Market Performance; Scarring Effect;
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