• Journal of Labour Economics
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• v.30 no.1
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• pp.55-83
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• 2007

This paper examines the welfare aspects of loan-based self-insurance against unemployment, and discusses the scope of government intervention in its provision. This paper deals with these issues in a model where the individuals may experience unemployment shocks frequently to leave little savings for retirement, so that the government may have to provide them with unemployment and retirement insurance benefits during their unemployment and retirement, respectively. We identify the two interesting features in the model: the externality that the self-insurance exerts, upon other social insurances, and the incentive of private sector to provide loans that exerts the externality upon other social insurances. In particular, this paper shows that, although the inefficiency associated with private loan warrants the government provision of loans to unemployed workers, the over-incentive of the private sector to offer loans may reduce the scope of the government intervention. This paper also shows that, unless the inefficiency associated with private loans is high, the private incentive for loans would reduce welfare because of the externality generated by private loans.

• KDI Journal of Economic Policy
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• v.14 no.4
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• pp.107-121
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• 1992

Moonlighting or second-jobs will increase shirking of the primary job. This paper analyzes the motives for moonlighting so that the means of reducing these motives could be explored. The traditional theory claims that a worker who cannot fully realize his work potential will look to moonlighting. In a two-period model, however, the following motives are more important. The precautionary savings motive : A worker has an incentive to save for fear of losing his job and his income in the second period. The worker could save more by working more during the first period, and this additional motive for working is the precautionary savings motive. The insurance motive : When a worker is unemployed, he cannot expand his moonlighting hours according to his needs since the moonlighting hour is upward rigid. Therefore, a worker has an incentive to secure additional moonlighting hours in the first period so that quick adjustment can be made during the unemployment in the second period. Two policy measures to remove those motives for moonlighting are recommended, for these measures will enhance the productivity in the primary job. First, a firm should guarantee that there will be no layoffs in a downturn in the economy and that the employment level is adjusted to the economic states by work sharing among workers. Second, as unemployment insurance benefits compensate a portion of the income in case of unemployment, it substitutes the motives for moonlighting. A generalization of this argument can be found in Ehrlich and Becker(1972) where self-insurance(moonlighting) and market insurance(in this case, unemployment insurance) serves as substitutes. The two policy measures in the above have a spill-over effect : A decrease of labor supply in the moonlighting market will ease job search, and therefore will help those who have their primary job in the moonlighting sector.

• The Journal of the Korea Contents Association
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• v.21 no.9
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• pp.184-197
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• 2021

Prior to the establishment of 'Employment-Related Big Data Center (tentative name)' to support the development of customized employment services. This Paper examines the current status and limitation of employment-related data in korea. Then, the implications were derived through foreign employment-related big data construction cases. Through the above analysis, I proposed measures to build and utilize employment-related big data at the individual level, focusing on the Transitional Labour Markets theory that emphasizes the implementation of individual labor force states. Finally, we presented future challenges such as massive maintenance of employment-related DB, increased representation of big data to be built around employment insurance DB, and increased reliability of DB presented.

• International Commerce and Information Review
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• v.13 no.3
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• pp.77-95
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• 2011

This paper investigates the relationship between export and economic variables such as trade insurance, world economy activity, relative price, unemployment rate, exchange rate volatility, using monthly data. I employ Johansen cointegration methodology since the model must be stationary to avoid the spurious results. The results indicate that there is a long-run relationship between export and variables. Also, the empirical analysis of cointegrating vector using the CCR, DOLS, FMOLS reveals that the increases of trade insurance has positive relations and the increases of exchange rate volatility have negative relations with export. Especially, DOLS based on Monte Carlo simulations, of this estimator being superior in small samples compared to a number of alternative estimators, as well as being able not only to accommodate higher orders of integration but also to account for possible simultaneity within regressors of a potential system. This paper also applies impulse-response functions to get the additional information regarding the responses of the export to the shocks of the variables. The result indicates that export positively to trade insurance and then decay fast compare with exchange rate volatility. Consequently, trade insurance plays the role of trade policy for export promotion in Korea. Whereas, increase of exchange risk result in reduction of export. Therefore, the support of trade insurance should be expanded and the stabilization of the foreign exchange market must be done for the export promotion.

• 한국사회정책
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• v.24 no.4
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• pp.113-150
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• 2017

This study analyzes how workers become impoverished and have their jobs less stabilized after they suffer from non-job-related sickness. Given that South Korea lacks sickness benefits, which most of OECD member states legislate and implement except US and Switzerland, this study examines its impact on laborers' job stability and povertization in Korea. The researchers have conducted in-depth interviews with nine former or present laborers who have the experiences and four experts on the issue in July-September, 2017 for the qualitative analysis. It is found that laborers, after becoming aware of their sickness, at first endure their pain without informing their employers not to lose their jobs. The attititude is observed especially among non-standard laborers, because sickness more often leads to job loss for them than for standard laborers. After workers have to leave their jobs due to their sickness in the end, they have no choice but to keep working in less stable jobs to compensate for income losses. They become gradually impoverished with their social capital like family bond declining. We observe laborers who are eligible for industrial accident insurance compensation could not benefit from the system because some employers refrain from the legal reporting duty. Due to this illegal practices, some industrial accident victims unduly lose their jobs due to "non-job-related sickness". Second, some employers report to the authority that their sick laborers have left their jobs 'voluntarily' even when they have quitted it without their volition, in which case the newly unemployed are not eligible for unemployment benefits. Large holes in Korea's safety nets for those suffering from multiple risks of sickness and unemployment.

• Korean Journal of Labor Studies
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• v.23 no.2
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• pp.169-193
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• 2017

This study analyzed the determinants that affect employment retention rate in order to diagnose dynamic employment stability in Korea. For this analysis, we constructed multi-level hierarchical data linking Workplace panel survey data and employment insurance job history data. And the determinants were analyzed using a multi-level analysis model suitable for these data. As result of the analysis, it is estimated that the employment stability is very low in Korea due to the widespread existence of the marginal sectors with low wage level and high level of nonstandard employment. In addition, the results of this analysis show that employment structure of Korea occupies considerable area of short-term employment where employment and unemployment are repeated, and overall employment stability is weak. This fact is likely to be a limiting factor for continued growth, as there is limited opportunity for skill development and skills formation at the corporate and individual levels. According to the results of this analysis, it is required to improve the quality of the employment structure for continuous growth and skill formation.

• The Journal of the Korea Contents Association
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• v.19 no.4
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• pp.598-608
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• 2019

This study is empirically intended to look into the effects of safety income system on recipient's economic independence and life satisfaction under the social security system. To achieve this, a survey was carried out to 650 adult householders benefiting from the social security system. The SPSS 23 statistical program was used to apply measurement variables related to the safety income system. The results of this study are summarized as follows. The social insurance and the social assistance of safety income system were adopted, having a significant effect on the economic independence. The effect of economic independence on life satisfaction was rejected, while the effect of social assistance on life satisfaction was adopted, showing a difference in the effect of each factor. The findings imply that social insurance and social assistance with support for safe income can be a positive help for economic independence, and unemployment benefit, national pension, long-term care subsidy and health insurance can help to achieve real economic independence, adopting only social assistance with limitation to life satisfaction. Consequently, the safety income system is very useful in helping recipients to achieve their economic independence through its introduction, but there is some distance to meet their life satisfaction.

• Journal of Labour Economics
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• v.37 no.4
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• pp.1-24
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• 2014

This paper examines the changes in early reemployment bonus system in Korea and investigates its effects on job finding rates of the unemployed and on their reemployment outcomes. The analysis on the characteristics of the recipients reveals that, after the policy change, the probability of receiving the bonus increases among female, older, and less educated job seekers. This paper also shows that exit hazard from unemployment has not changed significantly while the stability of the subsequent jobs has been substantially improved.

• KDI Journal of Economic Policy
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• v.9 no.2
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• pp.25-37
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• 1987

본(本) 연구(硏究)의 목적(目的)은 우리나라에 장시간근로가 행해지고 있는 데 원인을 규명함에 있다. 이를 위하여 초과근로시간(超過勤勞時間)과 신규고용간(新規雇傭間)의 상대적(相對的) 노동비용(勞動費用)을 비교 분석하였으며 분석방법으로는 이론모형(理論模型)의 활용(活用) 대신에 수식(數式)을 이용하여 비용을 직접 계측(計測)하였다. 분석을 위하여 근로자(勤勞者)는 소득을 증대시키기 위하여 기업의 초과근로시간을 받아들이는 것으로 가정되었다. 통계자료는 노동부의 각종 공식 발표통계와 기업별(企業別) "서베이" 자료를 사용하였다. 분석결과에 따르면 우리나라 전체로 볼 때 초과근로시간(超過勤勞時間)에 따른 노동비용(勞動費用)이 신규고용(新規雇傭)의 경우에 따른 비용의 72%에 달하였다. 초과근로시간으로 인한 노동비용(勞動費用)이 상대적으로 낮은 주된 이유는 기업(企業)의 임금체계상(賃金體系上) 정규임금(正規賃金)의 비중(比重)이 낮고 비임금노동비용(非賃金勞動費用)이 높은 데 있었다. 한편 산업별(産業別)로는 섬유(纖維) 의류(衣類) 신발 등 비교적 노동집약적(勞動集約的)이며 저임금부문(低賃金部門)이 집중되어 있는 산업에서 신규고용(新規雇傭)에 대한 초과근로시간의 상대적(相對的) 노동비용(勞動費用) 비율(比率)이 낮게 나타났으며 기업별(企業別)로는 규모가 클수록 이 비율이 낮게 나타났다. 이러한 결과에 의하면 기업의 임금체계를 점차 기본급(基本給) 위주로 바꾸어 나가고 실업보험제(失業保險制)를 도입하여 기업으로 하여금 근로시간(勤勞時間)보다는 고용수준(雇傭水準)을 경기변동에 맞추어 조절하도록 도와주는 것이 바람직하다.

• Korean Journal of Labor Studies
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• v.24 no.2
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• pp.247-291
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• 2018

This study investigates the employment structure and the social safety net experience of the subcontracting cleaning workers in Korea, who have been main targets of the labor outsourcing despite the necessity and permanence of their labour. This study specifically focuses on the fact that these subcontracting cleaning workers are mostly female and in their old age, and analyzes how the combination of their age, gender, and employment structure leads to the (mis)match with the Korean social security system. Case study with in-dept interview method has been conducted to the old-aged female subcontracting cleaning workers in Korea. The result of this study is as follows. It was the income insecurity that led them to (re)enter the labour market, and the cleaning work was the almost the only wage work they could do considering their age and gender. Cleaning workers are mostly employed in the subcontracting company, and thus their labour contracts depend on the business contract period between the original and subcontracting company. Consequently, their employment relationship is mostly insecure unless they are guaranteed employment succession through the collective agreement of trade union. Moreover, it has been discovered that the employment insecurity due to the indirect employment relationship led to the poor labour conditions, low wage, and the exclusion from the social safety net.