• 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 Labour Economics
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• v.25 no.1
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• pp.47-74
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• 2002

Since the Economic Crisis at the end of 1997, unemployment rate soared up to the record-high 8.6% (February 1999) and, for youth aged 15~29, it was 14.6% (27.8% for aged 15~19). In spite of economic recovery after the crisis, new participants in labor market at the school-to-work transition have faced with difficulties in finding their first jobs and, even further, the ratio of youth at out-of the labor force but not in school has remained at a higher level. It is important to calibrate the negative effects of nonemployment in the short-run as well as in the long-run, but there has been few study on the school-to-work transition in Korea. This study focus on the nonemployment duration to first job after formal education and comparison of its pattern before and after the crisis. A proportional hazard model, considering job prenaration before graduation (21.4% of the sample), with the semi-parametric baseline hazard is applied to the sample from the Korean Labor and Income Panel Survey(1998~2000) and its Youth Supplemental survey(2000). Interview of the Survey is conducted, by the Korea Labor Institute, to the same 5,000 household and 13,738 individual sample, guaranteeing nationwide representativeness. The Supplemental Survey consists of 3,302 young individuals aged 15 to 29 at the time of survey and 1,615 of them who are not in school and provide appropriate information is used for the analysis. The empirical results show that there exists negative duration dependence at the first three or for months at the transition period and no duration dependence since a turning point of the baseline hazard rate and that unemployment rate reflecting labor demand conditions has a positive effect on exiting the nonemployment state, which is inconsistent with a theoretical conclusion. Estimation with samples separated by the date of graduation before and after the crisis shows that the effect of unemployment rate on the hazard was negative for the pre-crisis sample but positive for the post-crisis sample.

• KDI Journal of Economic Policy
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• v.36 no.3
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• pp.121-168
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• 2014

After analyzing and finding the explaining factors about the "Effect of My Mom's Friend's Son (MMFS Effect)" with online-surveyed data, we introduce this concept into the conventional job search theory to develop it further. We try to estimate its effects on the hazard rate of youth pre-employment duration with some proxy variables such as his/her parents' schooling, living with parents dummy, increasing rate of consumer price index representing the burdens of parents, monthly temporary/daily workers ratio, relative ratio of quarterly 90th percentile urban household income, monthly average wage differentials between the workers of large and small firms, etc. The results confirm us the fact that so called "MMFS Effect" has been effective enough and strengthened up to recently. The conventional job search theory should be extended to be able to introduce the influencing effects of other person's success, for instance MMFS's success, on the job search behavior of youths, too.

• The Journal of the Korea Contents Association
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• v.10 no.9
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• pp.387-398
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• 2010

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.