• Journal of Labour Economics
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• v.29 no.2
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• pp.67-116
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• 2006

This study directly analyzes the wage distributions rather than indirectly looking at a few of their moments. It also investigates wage distributions using various descriptive and semi-parametric methods. The wage distributions of Korean manufacturing industries can in general be represented by three distinct forms, underdeveloped, advanced and the medium of the two. The discrepancies in these distribution forms are explained by differences in the labor-type distributions and their weights in the composition of wage distribution forms, and further clarified through various descriptive statistics based on them. However, the descriptive statistical analysis has a limit in that it shows mixed outcomes of different categoric variables. Then, this problem is resolved by applying a semi-parametric estimation of hazard function and the marginal effect evaluations of variable changes on estimated distributions not on the function. As a result of this marginal analysis, the common features and differences of categoric variables and their intensities of effects on distributions are revealed.

• Journal of Labour Economics
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• v.42 no.1
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• pp.1-42
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• 2019

In this study we find that relatively high minimum wages should make the employment ratios of youth, old, and woman lower very significantly in those regions concerned, futhermore, make the overall employment ratios of those regions lower also by using a proxy variable, the Regional Minimum Wages-Half Median Wages Ratio which represents well the very stable differential structure of wage distributions among regions in Korea. In large Cities those effects become much stronger. But we find also that those effects on the rates of regional unemployment are somewhat double-faced except the case of youth because of the probable generating of many discouraged unemployed among the old and women. So, we can conclude that because of the differential regional economic situations it is not sustainable to increase the overall minimum wages uniformly and excessively and strongly necessary to explore ways toward introducing the proper system of regional minimum wages.

• Journal of Labour Economics
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• v.36 no.3
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• pp.29-64
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• 2013

This paper documents the recent changes in wage density and decomposes them. Middle group is found to have shrunk, one-third of which reflects the changes in worker composition. The rest mostly reflects insufficient supply response to the rising skill demand within jobs. The pattern is more pronounced among manufacturing, large and unionized firms, and production workers.

• Journal of Labour Economics
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• v.39 no.4
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• pp.31-56
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• 2016

This study analyzes the effect of a minimum wage on the wage compression within Korean establishments. The results are as follows. Firstly, increases of a ratio of workers who get minimum wage within establishments have a effect to compress the wage distribution within establishments. Secondly, the establishment average wages get lower as their minimum wage ratios get larger. In this situation, high wage group's wages fall deeply than low wage group's these. Thirdly, the relative wages of high wage group to low wage group tend to be small as their minimum wage ratios get larger. To conclude, a increase of minimum wage has a effect to raise low wage workers' wages directly, and to reduce high wage workers' wages or increase rates indirectly. And the wage distributions are compressed as a result. So government's policy to increase minimum wage will have a result in reducing wage inequality.

• Journal of Labour Economics
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• v.26 no.3
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• pp.77-114
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• 2003

Analyses of the special data sets constructed from the National Longitudinal Survey of Youth and the Panel Study of Income Dynamics reveal that, compared with an annual wage measure, survey week wages are significantly counter-cyclically biased due to selecting workers with strong labor market attachment. We also find that survey week wages are more counter-cyclically biased in high-wage industries than in low-wage industries, that is, inter-industry gaps of survey week wages are counter-cyclically biased. Unlike existing longitudinal studies, the current study concludes that real wages are much more procyclical in high-wage industries than in low-wage industries, which is attributed to our adoption of annual wages that is less subject to the selectivity bias. Our finding is consistent with the empirical regularity that real wages are much more procyclical for men than for women, as men are overrepresented in industries with greater real wage procyclicalities. Overall, current results do not support the predictions of segmented labor market theories for the cyclicality of real wages.

• Journal of Labour Economics
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• v.37 no.4
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• pp.113-141
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• 2014

This paper examines the occupational gender wage gap in the Korea labor market. This paper classifies occupations into three(the blue-collar profession, white-collar profession and female-dominated profession) according to job characteristics and female worker's ratio. To analyze occupational gender wage gap, this paper uses Mincer's wage equation(1974) and Oaxaca model(1973). The results are listed below. First, the gender wage gap is growing in all occupations. Second, the cause of increasing gender wage gap varies in different occupations.

• Journal of Labour Economics
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• v.31 no.3
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• pp.47-74
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• 2008

Following two pioneering works, Medoff and Abraham(QJE 1980; JHR 1981) and Flabbi and Ichino(LE 2001) which use performance rating of personnel data as individual worker's productivity, this study replicates their analysis using a Korean large firm's personnel data(2000, male white collar workers). According to their methods through Mincerian earnings function, and multinomial logit model that links the distribution of wages and performance ratings, we find that seniority wages appeare continuously even if individual worker's productivity is controlled. Therefore we conclude that incentive or deferred compensation theory is more suitable than human capital theory.

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

• Journal of Labour Economics
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• v.44 no.1
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• pp.73-101
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• 2021

Employing bunching estimators of Cengiz et al. (2019) for data from the "Economically Active Population Survey," this paper estimates the effect of minimum wage increases on the volume of waged employment for the period 2009-2019. A bunching estimator, which exploits yearly changes in the hourly wage distribution due to the minimum wage hike, can be easily applied to the Korean labor market, which adopts the yearly single national minimum wage. The estimation results suggest that an increase in the annual minimum wage during the period from 2009 to 2019 had a negative effect on the volume of waged employment. A 10% increase in the (real) minimum wage leads to a 1.42~1.74% decrease in the volume of waged employment. Disemployment effects of minimum wage hikes are greater in the sector with a higher proportion of minimum wage workers. It is necessary to carefully consider disemployment effects in determining the level of the minimum wage.

• KDI Journal of Economic Policy
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• v.6 no.2
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• pp.2-17
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• 1984