• Journal of Labour Economics
• /
• v.25 no.2
• /
• pp.109-128
• /
• 2002

Korean economy has contains many economic problems during past 2-3 years. One of these problems is unemployment rate rise rapidly. So Korean government has proposed many programs to deal specifically with male and female unemployment. But important things are not only administratoin's programs but also unemployed persons' reservation wage. Accordingly the purpose of this thesis is to analyze why reservation wages differ between male and female. The data we are going to use is the unemployment survey by researcher in 1998. By the result of the estimation of reservation wage functions, we are found two fact. The first is the principle of determinants reservation wage are different between male and female. In esimation of male reservation wage function, early wage and age, education level, unemployment period are very important determinants. But in esimation of female reservation wage function, early wage and education level, age, licence are very important determinants. The second is the reservation wage-setting mechanisms are different between male and fermale. Therefore we conclude that because Korean labor market is stratified labor market, reservation wage-setting mechanisms are much different by sex.

• Journal of Labour Economics
• /
• v.27 no.1
• /
• pp.135-164
• /
• 2004

Using the data from the KLIPS, this study categorizes unemployed women into the four mutually exclusive groups according to the two criteria (whether to have intention to work and the comparison of reservation and market wages), and investigates factors affecting the status of the unemployment of women. Heckman's sample selection regression and multinomial logit are applied for the estimation. The major results are: the proportion of unemployed women who do not have intension to work or whose reservation wages are greater than expected market wages is about 50%, and the proportion of unemployed women who have intension to work or whose reservation wages are less than expected market wages is about 50%; second, human capital, burden of child raising and household production, household economic status, the variables related to work experience are found to be the factors affecting unemployment status of women.

• Korean Journal of Labor Studies
• /
• v.17 no.1
• /
• pp.71-94
• /
• 2011

This paper criticizes the arguments for the high and rigid reservation wages as main cause of the youth joblessness. First, using longitudinal aspect of the Korea Labor and Income Panel Study, I found that there exists declining reservation wage for the young who make the transition from unemployed to employment. Second, the average duration of school-to-work transition in Korea is relatively low compared to that of other countries. Moreover the duration between leaving school and staring the first job has not significantly negative effect on adult labor market outcomes, but the quality of first job and unstable job experiences have serious negative effects on working career. These findings show that the high youth joblessness is due to both decent job deficit and labor market segmentation.

• Korea journal of population studies
• /
• v.21 no.2
• /
• pp.58-82
• /
• 1998

It is usually proposed that job security of old age workers is hampered by the structure of wage increasing with age. This paper sets forth a model to comprehend the characteristic of the old age workers' labor market and policy implications derived from it. In order to stimulate demand for old age workers, policy initiatives should be taken as follows : the wage criteria should be simplified which apply differently from one institution to other; incentives relatively favorable for employing old age workers' in manufacturing sector should be also given to service sectors; employment subsidy or other tax incentives should be given for labor contract after the retirement age; licensing and evaluation system for job ability should be introduced based on occupation & job analysis. To lower the reservation wage of workers, mortgage loan for house and long-term low interest loan for tuition fees should be developed together with stabilization of housing cost. Wedding culture which requires high expense should be amended. Above all, it is necessary to install reasonable social security system. Policy orientation should also pay attention to reduce labor supply of the old aged via aiding old age workers' firm opening and voluntary civil service together with developing various honor programs for members of civil corps.

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

• Korea journal of population studies
• /
• v.10 no.2
• /
• pp.1-16
• /
• 1987

This work examines reemployment processes through the use of event history unemployment data in the United States. Two aspects of these processes, the duration of unemployment and changes in the reemployment rate, are modelled and analyzed in terms of individual characteristics and their structural positions in the labor market. The secondary labor market is a competitive market in which unemployment occurs because people quit their jobs to devote more time in search for better jobs. Using search theory, the rate of reemployment has a positive time dependence as the searcher lower her reservation wage with the passage of time. By contrast, the primary market is characterized by long-term employment relations which reduce voluntary turnovers but generate layoffs temporarily. Relying on contract theory, because workers on temporary layoffs wait for recall, reemployment rates have a constant time dependence. Empirical results of unemployment durations indicate that reemployment processes are influenced by individual's positions in dual labor market structures. While the analysis suggests that the amount of search reemployment seems to be positively related to the degree of competitiveness of a market, somewhat weaker results are noted in the search reemployment processes in competitive markets.

• Korea journal of population studies
• /
• v.20 no.2
• /
• pp.43-66
• /
• 1997

This work examines reemployment processes through the use of event history unemployment data in the United States. Two aspects of these processes, the duration of unemployment and changes in the reemployment rate, are modelled and analyzed in terms of individual characteristics and their structural positions in the labor market. The secondary labor market is a competitive market in which unemployment occurs because people quit their jobs to devote more time in search for better jobs. Using search theory, the rate of reemployment has a positive time dependence as the searcher lower her reservation wage with the passage of time. By contrast, the primary market is characterized by long-term employment relations which reduce voluntary turnovers but generate layoffs temporarily. Relying on contract theory, because workers on temporary layoffs wait for recall, reemployment rates have a constant time dependence. Empirical results of unemployment durations indicate that reemployment processes are influenced by individual's positions in dual labor market structures. While the analysis suggests that the amount of search reemployment seems to be positively related to the degree of competitiveness of a market, somewhat weaker results are noted in the search reemployment processes in competitive markets.