• Journal of the Korean Regional Science Association
• /
• v.38 no.2
• /
• pp.3-20
• /
• 2022

The purpose of this study is to explore the heterogeneity of compensating wage differentials for outdoor workers, under the threat of climate change and heatwave, by region and by wage quantile. This study conducted Oaxaca-Blinder decomposition, multiple regression analysis by region, and unconditional quantile regression analysis using the Korean Working Conditions Survey, which provides individual-level information on the working environment and worker's characteristics. The implications derived from the results of the study are as follows: For most variables, the endowment effect and the price effect were greater for indoor workers, while experience and gender played a role in narrowing the wage gap; The compensating wage differentials for outdoor workers were confirmed to be 2.4% nationwide, depending on the region however, the compensating wage differentials varied from 5 times of national average to nothing statistically significant; The higher the wage quantile, the greater the compensating wage differentials for outdoor workers, and statistically significant monetary compensation was not identified for some low-level outdoor workers. This study is meaningful as an early study that revealed the heterogeneity of compensating wage differentials for outdoor workers and suggested further research on the topic.

• Journal of Labour Economics
• /
• v.17 no.2
• /
• pp.289-318
• /
• 1995

• Korean Journal of Social Welfare Studies
• /
• v.47 no.3
• /
• pp.139-159
• /
• 2016

This study aims to investigate the wage gap between male and female workers at social welfare institutions and to determine its factors. For this purpose, a Blinder-Oaxaca decomposition and regression models are applied to analyze wage survey data. The results are as follows. Firstly, the gender wage gap of social workers is a bit smaller, compared to the average of wage earners. Secondly, about two-thirds of wage gap is due to differences in productivity(endowment) factors; the other part is due to discrimination. Thirdly, the most important cause of gender wage gap is career disruptions of female workers largely due to marriage and birth. Fourthly, other causes of gender wage gap include differences in education, in job grade, in employment status, and in the characteristics of institutions. Finally, among the discriminating factors worsening gender wage gap, a key factor is a gender discrimination in the compensation for age.

• Journal of the Korean Regional Science Association
• /
• v.33 no.2
• /
• pp.3-23
• /
• 2017

This study aims to understand how human capital is related to the inter-regional wage gap between the capital region and the non-capital region in Korea. We focus more specifically on whether the inter-regional wage gap is due to high levels of human capital in the capital region or due to high returns to human capital in the capital region. The decomposition method based on the unconditional quantile regression was used to examine how the relationship between human capital and the inter-regional wage gap varies along the wage distribution. When first estimating earnings functions from the two regions to apply this decomposition method, we included not only conventional indicators of human capital, such as education and on-the-job training, but also occupational skills including cognitive-interactive skills, technical skills, and physical skills. As a result, other things being equal, a large part of the inter-regional wage gap was explained by the human capital variables. Although the composition effect of the human capital variables existed in all the wage quantiles, the more important factor was the wage structure effect of the human capital variables. In addition, among the various human capital variables, the wage structure effect of years of education was a key factor in explaining the inter-regional wage gap. This study is meaningful in that it shows that the relationship between human capital and the inter-regional wage gap may vary depending on the wage quantiles.

• Journal of Labour Economics
• /
• v.30 no.2
• /
• pp.1-31
• /
• 2007

The purpose of this paper is to analyse wage differentials between non-regular and regular works. Data from EAPS(Economically Active Population Survey) 2005 show that the monthly wage level of non-regular worker is only 63% of regular worker and thus there exist 37% wage differentials. However, these wage differentials do not control for hours of work, the amount of human capital, job characteristics, and other individual characteristics affecting wages. If these variables are added to the hourly wage regression equation, the wage gap between non-regular and regular workers drastically decreases to 2.2%. Furthermore, decomposition of the wage differentials by Oaxaca method shows that productivity difference between non-regular and regular workers explains up to 91% of the wage gap. This implies that the magnitude of wage discrimination against non-regular workers is at most 0.2% of hourly wage of regular workers. To control for unobserved individual heterogeneities more accurately, we also construct panel data and estimate wage differentials. The results from the panel data approach show that there is no difference in the hourly wages between non-regular and regular workers. In some specifications, the wage rate of non-regular worker is rather higher than that of regular worker. These results are consistent with economic theory. Other things being equal, workers with unstable employment may require higher wages to compensate their unstability. Firms are willing to pay higher wages if they can get more flexibility from non-regular employment. Empirical results in this paper cast doubt on the view that there is wage discrimination against non-regular workers in the labor market. Public policies should be targeted for disadvantaged groups among non-regular workers, not for non-regular workers in general.

• Journal of the Korean Regional Science Association
• /
• v.32 no.2
• /
• pp.45-59
• /
• 2016

The purpose of this study is to analyze the static and dynamic change of wage differentials of women with disabilities in the Seoul local labor market. This study attempts to explain the double discrimination mechanism for disabled women and empirically gender discrimination and disability discrimination for them by using Oaxaca-Blinder decomposition analysis. In addition, using Juhn-Murphy-Pierce decomposition analysis. we analyze the wage differentials caused by the changed characteristics of disabled women and structures of discrimination at the Seoul local labor market. Data from the Panel Survey of Employment for the Disabled and Korean Labor and Income Panel Study for two years (2008, 2012) are used. According to the result, wage differentials of disabled women caused by disability discrimination is approximately 55% of total wage discrimination, whereas 45% is caused by gender discrimination during the period. Both observed and unobserved components move in the same direction to narrow wage differentials due to the disability discrimination and gender discrimination. Also the endowments in the Seoul local labor market about the changes of observed and unobserved components contribute more to narrow gender wage differentials, while these endowments widen disability wage differentials.

• Journal of Labour Economics
• /
• v.29 no.2
• /
• pp.29-66
• /
• 2006

This study investigates the structural change of wage determination within internal labor market that have occurred around the financial crisis in 1997 by using the personnel data(1996~2000) of a Korean large firm. We take the effect of performance-based pay system to apply on wage determination of workers using Mincerian earnings function estimation. After introducing the annual salary system in the firm, we did not find the fact that the wage effect of seniority decreases, but we found the wage effect of relative evaluation ratings increases. Then, this study identifies the importance of the reward strategy of firm in Korean internal labor market. Finally, we have concluded that although the firm acknowledged the positive effects of performance-based HRM practices, we have not obtained enough evidence on the transformation into such practices because the seniority-based HRM has been traditionally prevalent in the Korean internal labor market.

• Journal of Labour Economics
• /
• v.40 no.3
• /
• pp.29-55
• /
• 2017

We examine the effects of the self-reported subjective and the objective health indexes on work compensations. The compensations consist of monetary factors, such as wages, and non-monetary factors reflecting job risks such as the workplace accidence. The wages and workplace injuries are clearly affected by gender and age differences as the subjective and objective health factors of elderly workers are combined with physical and systematic work environments. Mental health problems such as work depression are more serious especially for high income elderly groups. The elderly workers experienced with physical problems and chronic illnesses are led to the decrease in wages and the increase in safety accident risks at work sharply. Therefore, we need to provide supporting services, retirement planning designed by companies, supported by the government enhanced risk working conditions and the weakness on protecting jobs.

• Journal of Labour Economics
• /
• v.30 no.1
• /
• pp.31-53
• /
• 2007

This paper, using the sample of male workers in manufacturing industry from the HCCP (Human Capital Corporate Panel) data, analyzes the effects of trade union on the level and dispersion of wages. One of the advantages of the HCCP data is that it enables a researcher to control the effect of individual firm's 'ability to pay' on wage. All relevant variables controlled, the union effect is estimated to be 5-8%. Yet this figure seriously underestimates the wage advantage enjoyed by union workers, because union sets the "price" for experience low and the price for tenure high and at the same time extends tenure of workers by adopting strong employment protection policy. The paper also analyzes the effects of union on the wage inequality. The results are mixed: overall wage inequality is smaller in union sector while standard deviation is larger when all the personal characteristics are controlled.

• Korean Journal of Labor Studies
• /
• v.23 no.2
• /
• pp.1-45
• /
• 2017

This study aims at explaining organizational mechanisms of inequality that has been rising rapidly alongside the proliferation of irregular employment in the post-crisis Korean labor market. It argues that inequality is not sufficiently explained by individual gap in human capital or widespread marketization as such. Social categories into which each individual worker falls seems more important as a source of labor market inequality. Employment types that are composed of regular and irregular employment do not simply indicate the different economic meanings of employment contracts but have rather been institutionalized as a social category of status in the context of inequality over the past two decades. They are also often matched with other social categories such as gender that have created and reproduced greater labor market inequality. We pay attention to the organizational practice of dominant incumbents who make claims for advantages of return based on their exclusive accessibility to limited organizational resources and explain how that particular practice plays a role to increase relational inequality between those insiders who achieve advantageous returns and outsiders mostly irregular workers who are excluded from those resources because of the social categories that they belong to. In this study, we identify seniority based pay as the key organizational practice that justifies categorical differences within the workplace and examine how that particular practice contributes to organizational level segmentation and income ineqaulity.