• Journal of Labour Economics
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• v.34 no.2
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• pp.79-107
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• 2011

This study investigates the status of English scores in the Korean labor market. We provide an empirical explanation of how English scores affect labor performances in Korea. Specifically, we focus on the effects of TOEIC scores on college graduates' job opportunity and wage premium. Our empirical tests for TOEIC scores are implemented in three dimensions: (1) Screening effects (2) Signaling effects (3) Wage effects. The results are as follows. First, we find the positive correlation between TOEIC scores and job opportunities, which implies that TOEIC scores play an important role in employee selection process. Second, our tests give the same results when it comes to job seeker's use of TOEIC scores as signaling instrument. That is, high TOEIC scores have positive signaling effects in the labor market. However, there also exists disadvantage effect of low TOEIC scores, in that job applicants with TOEIC scores below certain level are even more disadvantageous than those with no TOEIC scores. Finally, wage premium of TOEIC scores are found, even when other variables (e.g. GPA) are controlled or we use the instrumental variable estimate.

• KDI Journal of Economic Policy
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• v.34 no.2
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• pp.1-15
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• 2012

We develop an identity choice model within the context of a stereotyping-cum-signaling framework. The model allows us to explore implications of the fact that, when individuals can choose identity, then the distribution of abilities within distinct identity groups becomes endogenous. This is significant because, when identity is exogenous and if the ability distributions within groups are the same, then inequality of group reputations in equilibrium can only arise if there is a positive feedback between group reputation and individual human capital investment activities (Arrow, 1973; Coate and Loury, 1993). Here we show that when group membership is endogenous then the logic of individuals' identity choices leads there to be a positive selection of higher ability individuals into the group with a better reputation. This happens because those for whom human-capital-investment is less costly are also those who stand to gain more from joining the favored group. As a result, ability distributions within distinct groups can endogenously diverge, reinforcing incentive-feedbacks. We develop the theoretical framework that can examine the positive selection and the endogenous group formation. The model implies that inequality deriving from stereotyping of endogenously constructed social groups is at least as great as the inequality that can emerge between exogenously given groups.

• Journal of Labour Economics
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• v.33 no.2
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• pp.91-134
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• 2010

This study examines job transition process and its lahor market performance by reasons of job separation, using the Employment Insurance DB(2000~07). The findings show that involuntary job changers lend to suffer greater loss in job spell and real wage than voluntary job changers, which seems to reflect their characteristics such as lower quality of job matching due to unsystematic job search, negative signaling effect in the labor market and decreasing availability of human capital in previous job. In addition, unemployment benefit eligible for involuntary job changers tends to prolong the period of unemployment, while increasing job spell in the following employment.

• Journal of Practical Engineering Education
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• v.16 no.3_spc
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• pp.351-365
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• 2024

Although jobs in the employment service sector have been continuously expanding over the past 20 years, many in the labor market point out that the signaling and selection functions of job counselor qualifications are deteriorating because job counseling and psychology were developed mainly in the early 2000s. Therefore, in this study, a survey was conducted on current employment service workers on the establishment and improvement of employment service professional qualifications. According to the data analysis, employment service workers lack the current level of competence compared to their importance in all their jobs, and there is a limit to taking charge of all the expanded employment service jobs such as corporate support, administrative management, and labor market program planning and execution as a single job counselor. As for the direction of reorganization of employment service-related qualifications in the future, more than half agreed to establish new qualifications. Similarly, more than half of the respondents wanted to strengthen the qualifications of existing job counselors related to employment services.

• Journal of Labour Economics
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• v.27 no.1
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• pp.1-25
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• 2004

In knowledge-based economy where the human capital has an strong compatibilities, the life cycle of technologies and skills get shorter, and the mobility of labor get greater, the role of the signal system of qualifications have greater importance. This article used the KLIPS(Korean Labor Institute Panel Study) data, and analysed the factors of the acquisition of qualifications and the employment and wage effects of the acquisition of qualifications by fixed effects logit model and random effects model. The lower school stratification acquired the more qualifications, and in the case of men the unemployed one acquired the more qualifications. The employment effects of the acquisition of qualifications are significant at first year and second year in women, but the men's of the employment effects of acquisition of qualifications are not significant. The wage effects of the acquisition of qualifications are not significant. The results of the regression suggest that in Korea the signal system of qualifications do not working, and that the qualifications in Korea need to reform.