• Journal of Labour Economics
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• v.25 no.1
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• pp.161-182
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• 2002

The self-employment can provide work time flexibility. Work time flexibility would be a critical factor for married females' labor supply considering allocation of their time to market work and household work. This study used the 1998 and 2000 Korea Labor and Income Panel Survey for the empirical analyses. Applying the bivariate probit model with partial observability, this study analyzed factors related to the choice of participation in labor market and choice of self-employment. Also, this study examined the effects of marriage and the presence of younger children on changes in decisions related to labor supply using the multinomial logit model: exit from the labor market, increasing and decreasing work hours. The presence of the younger children showed a significantly negative effect on the participation in labor market while positive, but insignificant, effect on self-employment. Compared with females working for others, self-employers without employees and unpaid family workers are less likely to exit labor market rather than increasing work hours. The self-employment would be a good alternative to evade females' career interruption and therefore to enhance the potential human resources.

• The Korean Journal of Applied Statistics
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• v.22 no.2
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• pp.281-296
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• 2009

This study examines the job and life satisfactions of the self-employed. It uses the Korean Labour and Income Panel Study(KLIPS, hereafter) data for 1998 and 2004. We examine the phases of satisfaction and what variables influence satisfaction for both years and compare the results in order to see what changed between the two regimes. We make use of k-means clustering to divide self-employed into similar degrees of satisfaction. As a result, we are able to classify the self-employed into three groups(low, medium and high) both for the two regimes. High groups consists of relatively younger, well-educated, low working dates, higher proportion of woman than other groups. As a result of regression analysis, we have some evidence that women are more satisfied than men for job satisfaction and that the existence of income is more important than the amount of income for life satisfaction. The age, education, satisfaction for working place, and health are significant to both satisfactions.

• Journal of Labour Economics
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• v.44 no.1
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• pp.31-72
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• 2021

This study uses the 12-21st waves of KLIPS to estimate the effect of the increase in the minimum wage on the individual's labor market transition through a multinomial logit. In particular, we examine whether there was an additional effect of the rapid increase in the minimum wage in 2018. The main results of this study are as follows. First, the increase in the minimum wage in Korea is found to have increased the probability of becoming unemployed for both wage workers and self-employed, but there is no additional impact found from the 2018 minimum wage increase. Second, the increase in the minimum wage is found to increase the likelihood of the self-employed entering into wage workers, especially temporary and daily workers. Third, we have found that the increase in the minimum wage in 2018 adversely affected self-employed people with high school education, and significantly lowered young wage workers entering into self-employed. Our results suggest that the recent increase in the minimum wage may be responsible for declining self-employment rate in Korea, and may have a negative effect on the quality of employment because the increase in minimum wage can lead to an increase in temporary and daily wage workers.

• 한국사회정책
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• v.23 no.3
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• pp.49-77
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• 2016

The aim of this study is to reveal errors in the estimations on the nonstandard workers scale which have resulted from little consideration for bogus self-employment. Bogus self-employment means disguised employment relationships that are considered to be self-employed workers even though they have inherent subordination. The methods of previous studies estimate that the bogus self-employed workers are excluded from estimations because they are not workers in principle. We analyze the scale of the bogus self-employments using the empirical data [the Korean Welfare Panel of 2008-2013(six wave panel)] to re-estimate the scale of non-standard workers. In 2013, the year of the last wave, the percentage of the bogus self-employment was high, the proportion of them is 28.5% among self-employment without owning a place of business. Our results expect the number of contract workers from re-analysis would be over 740 thousand when reflecting on the predictive value in the actual number of paid workers. In conclusion, it is necessary to apply reasonable methods of analysis concerning the scope and scale of the nonstandard workers for the sake of coping with measures against the problem of nonstandard workers. The aim of this study is to reveal the estimation error on nonstandard workers' scale which are resulted from having no consideration for bogus self-employment. Bogus self-employment means disguised employment relationship that is considered as self-employment workers even though they have inherent subordination. The methods of previous researches' estimation on nonstandard workers have the problem that the bogus self-employment workers are excluded from estimation because they are not workers in principle.

• Journal of Distribution Research
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• v.17 no.5
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• pp.39-57
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• 2012

The unabated influx of micro businesses has turned the Korean retailing market to a rat race, which causes severe financial distress for micro business owners due to heavy competition. The woes of these micro business owner's are exacerbated by the presence of large scale distributors such as Super Supermarket(SSM) and large discount stores. In summary, the Korean retail market is overburdened an uneconomically viable. Retailing has low barriers to entry which attracts unskilled labor or those with little capital. These start-ups have low opportunity costs since they would make low wages elsewhere in the economy. Thus, these owners are content with relatively low returns on their investment. These 'subsistence ventures' are maintained for economical viability rather than economic growth. These 'subsistence ventures' intensifies competition among small-scale businesses. The presence of large retail corporations also aggravates the situation. The recent stagnation of the economy has worsened the retail market in Korea. The overwhelming competition solidifies the coarse structural system and the prolonged economic sluggishness has increased the risk of insolvency for micro business owners. As the economy continues to stagnate, the imminent risk in retailing market will rise up to surface threatening economic stability. More systematic inflows and outflows of retailers are required in order to redress this structural problem. It has been empirically shown that the self-employment rate is high in Korea compared to other OECD countries. To draw the comparison of self-employment rate by industry, Korea shows high rates among transportation, whole sale, retail, education, lodging, and restaurants. In the case of the transportation and education service sectors, this high rate can be explained by the idiosyncratic nature of Korean culture. In the transportation sector, political policies favor private cap service and private freight carriers. In the education service sector, Koreans put particular emphasis on education that leads to many private institutions that outnumber other OECD countries. For these singular reasons, Korea maintains high micro business, self-employed rates particularly in retailing. A comparable nation is Japan, with its similar social, economic, cultural environment among OECD countries. Unlike Korea, Japan has much lower rates of micro business which continues to decrease. Also Korean retailers are much more destitute than Japanese. The fundamental problem of Korean retailing is the involuntary exit of these 'subsistence ventures,' micro businesses with low margins, in which a small drop in demand can lead to financial difficulties for the owner. This problem will be exacerbated when Korean babyboomers retire and join the micro business ventures. The first priority in order to cope with the severity of oversupply in retailing is to provide better opportunities for the potential self-employers. There should be viable alternatives to subsistent ventures. Strengthening the retirement program, scrutiny of exit process, reconfiguration of policy funds are the recommendations.

• International Area Studies Review
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• v.15 no.1
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• pp.241-266
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• 2011

This study examines the determinants of proportion of self-employed and their policy implications focusing hotel/restaurant and wholesale/retail sectors in Korea. In this study, we estimate the optimal size of self-employed in Korea using OECD data. Several hypothesis are tested by use of the regression analysis on the panel data of OECD economies during 2000-2007 period. Using the panel data of per capita GNI, unemployment level, income tax burden, we found that the excess supply level of self-employed was about 8.0%~9.5% overall. We also found that the excess supply level of self-employed was 13.7~14.1% for hotel and restaurant sector, and 10.4~11.1% for wholesale and retail sector. This results imply that strategically coordinated programs for noncompetitive sectors are more effectively implemented. Furthermore, more aggressive entry and exit policies are needed to solve the over-supply problem of self-employed in Korea.

• Proceedings of the Korean Society of Computer Information Conference
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• 2018.01a
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• pp.191-192
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• 2018

우리나라는 소상공인 및 자영업에 대한 비중이 매우 높은 가운데, 대형마트 및 SSM(Super Super Market), 편의점 등 기업형 유통 판매점의 확대로 인해서 위기감이 심화되고 있다. 본 논문에서는 다양한 사람들이 무의식적으로 생성해내는 빅데이터의 특성과 많은 유동인구흐름이 많은 전통시장의 특성을 빅데이터로 분석하여 마케팅 정보까지 제공하여 전통시장에서 유익하게 사용될 수 있는 시스템을 제안한다.

• The Journal of Bigdata
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• v.3 no.2
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• pp.35-49
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• 2018

It seems unrealistic to say that fried chicken, often known as the American soul food, has one of the biggest markets in South Korea. Yet, South Korea owns more numbers of fried chicken restaurants than those of McDonald's franchise globally[4]. Needless to say not all these fast-food commerce survive in such small country. In this study, we propose a predictive model that could potentially help one's decision whilst deciding to open a store. We've extracted all fried chicken restaurants registered at the Korean Ministry of the Interior and Safety, then collected a number of features that seem relevant to a store's closure. After comparing the results of different algorithms, we conclude that in order to best predict a store's survival is FDA(Flexible Discriminant Analysis). While Neural Network showed the highest prediction rate, FDA showed better balanced performance considering sensitivity and specificity.

• Economic Analysis
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• v.25 no.3
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• pp.1-29
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• 2019

This paper examines the impact of a dual labor market structure on labor productivity using unbalanced panel data from 29 OECD member countries between 1990 and 2015. By applying a variety of regression models on the panel data (e.g., a pooled regression, a fixed effects model and a GMM), we explore how changes in worker-type composition among temporary, permanent and self-employed workers contribute to productivity growth. While it appears that our results differ slightly, depending on the econometric models, overall an increase in the share of permanent workers leads to a relatively higher increase in productivity growth. On the other hand, it is also seen that the effects of the share of temporary workers on labor productivity are considerably lower than that of permanent and self-employed workers. To sum it up, our findings indicate that an increase in temporary workers could have an adverse effect on labor productivity.

• Economic Analysis
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• v.25 no.1
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• pp.66-122
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• 2019

As the Korean economy grew, employment expanded steadily, with the number of economically active people increasing and the employment-to-population rate also increasing. However, the working age population started to decline in 2017, and the employment of women and young people has been sluggish. The proportion of non-salaried workers in Korea is much higher than in other OECD countries, and is also excessive, considering Korea's income levels. In addition, the proportion of non-regular workers and the proportion of workers employed at small companies are particularly high among salaried workers. In light of these characteristics of Korean employment, the urgent problems facing the employment structure can be summarized by the deepening dual structure of the labor market, the increase in youth unemployment, sluggish female employment figures, and an excessive share of self-employment. Overall, it is seen that labor market duality is the main structural factor of the employment problems in Korea. Therefore, in order to fundamentally address this employment problem, it is necessary to concentrate policy efforts on alleviating labor market duality.