• Journal of Preventive Medicine and Public Health
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• v.39 no.6
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• pp.499-504
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• 2006

Objectives : The aim of the study was to estimate the annual socioeconomic cost of diseases in Korea. Methods : We estimate both the direct and indirect costs of diseases in Korea during 2003 using a prevalence-based approach. The direct cost estimates included medical expenditures, traffic costs and caregiver's cost, and the indirect costs, representing the loss of production, included lost workdays due to illness and lost earnings due to premature death, which were estimated based on the human capital theory. The cost estimates were reported at three different discount rates (0, 3 and 5%). Results : The cost of diseases in Korea during 2003 was 38.4 trillion won based on 0% discount rate. This estimate represents approximately 5.3% of GDP The direct and indirect costs were estimated to be 22.5 trillion (58.5% of total cost) and 15.9 trillion won (41.5%), respectively. It was also found that the cost for those aged $40\sim49$ accounted for the largest proportion (21.7%) in relation to age groups. The cost of diseases for males was 23.5% higher than that for females. For major diseases, the total socioeconomic costs were 16.0, 13.4, 11.3 and 11.19% for neoplasms, and diseases of the digestive, respiratory and circulatory systems, respectively. Conclusions : This study can be expected to provide valuable information for determining intervention and funding priorities, and for planning health policies.

• Journal of Preventive Medicine and Public Health
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• v.43 no.4
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• pp.352-361
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• 2010

Objectives: This study estimated the annual socioeconomic costs of food-borne disease in 2008 from a societal perspective and using a cost-of-illness method. Methods: Our model employed a comprehensive set of diagnostic disease codes to define food-borne diseases with using the Korea National Health Insurance (KNHI) reimbursement data. This study classified the food borne illness as three types of symptoms according to the severity of the illness: mild, moderate, severe. In addition to the traditional method of assessing the cost-of-illness, the study included measures to account for the lost quality of life. We estimated the cost of the lost quality of life using quality-adjusted life years and a visual analog scale. The direct cost included medical and medication costs, and the non-medical costs included transportation costs, caregiver's cost and administration costs. The lost productivity costs included lost workdays due to illness and lost earnings due to premature death. Results: The study found the estimated annual socioeconomic costs of food-borne disease in 2008 were 954.9 billion won (735.3 billion won-996.9 billion won). The medical cost was 73.4 -76.8% of the cost, the lost productivity cost was 22.6% and the cost of the lost quality of life was 26.0%. Conclusions: Most of the cost-of-illness studies are known to have underestimated the actual socioeconomic costs of the subjects, and these studies excluded many important social costs, such as the value of pain, suffering and functional disability. The study addressed the uncertainty related to estimating the socioeconomic costs of food-borne disease as well as the updated cost estimates. Our estimates could contribute to develop and evaluate policies for food-borne disease.

• Health Policy and Management
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• v.10 no.3
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• pp.169-187
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• 2000

Cigarette smoking has been identified as the most important source of preventable morbidity and premature mortality (WHO, 1995), The prevalence of smoking among men is very high in Korea. This study estimated productivity losses due to smoking in Korea, 1997. The derivation of cost estimates for mortality, disability, hospitalization and use of physician services related to cigarette smoking is bas 어 on the calculation of attributable fractions suggested by MacMahon and Cole and Smoking-Attributable Mortality, Morbidity, and Economic Cost(SAMMEC) software. To estimate the number of deaths from neoplastic, cardiovascular, respiratory diseases associated with cigarette smoking, estimates for adults(aged 20 years and over) were based on 1997 mortality data, 1995 data on smoking prevalence from Korea Institute for Health and Social Affairs. Smoking-attributable indirect morbidity cost data were obtained from the National Federation of Medical Insurance. As the result of cost estimation, these productivity losses were 336-430 billion won. During 1997, 8,620-10,804 deaths were attributed to smoking. Cigarette smoking resulted in 133,991-169,422 Years of Potential Life Lost (YPLL) to life expectancy. For smoking -attributable indirect mortality costs, the present value of future earnings(PVFE) for the age at death are 299-384 billion won. Smoking-attributable indirect morbidity costs, the costs of lost productivity for persons who are disabled by smoking-related chronic diseases are 37-46 billion won. In this study the productivity losses due to smoking were restricted to the health effects of smoking. It is possible that these costs were underestimated with the limitation of the data. Smoking is the leading preventable cause of illness and death. The results of this study can be used as elementary data for antismoking policy.

• Ocean and Polar Research
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• v.32 no.4
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• pp.387-396
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• 2010

This paper estimates changes in the total factor productivity and technical efficiency change index and the technical change index using the Malmquist productivity index (MPI) in fishery-processed wholesale products over the time period spanning 2006-2008. The model considers a number of employees and operating costs as input factors, and sales and EBIT (earnings before tax and interest) as output factors. The results demonstrate that, between 2006 and 2007, there has generally been no technical progress, although a small improvement in productivity was detected in the sales scale of 10 billion won-50 billion won. Between 2007 and 2008, there was technical progress in the majority of DMU, except within the range of 20 million won-10 billion won. Wilcoxon's rank-sum test, however, demonstrates no statistically significant differences in productivity between the two periods.

• The Journal of Fisheries Business Administration
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• v.41 no.3
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• pp.21-44
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• 2010

The paper estimates changes in total factor productivity and technical efficiency change index and technical change index using Malmquist productivity index(MPI) in fisheries wholesale products over the time period of 2006 through 2008. The model considers a number of employees and operating costs as input factors, and sales and EBIT(earnings before tax and interest) as output factors. The results indicate that, between 2006 and 2007, there is in general technical progress in which TCI(Technical Change Index) indicates 2.7994 in the sale scale of 50 million won through 100 million won, while there are no efficiency in TECI(Technical Efficiency Change Index), PECI(Pure Efficiency Change Index) and SECI(Scale Efficiency Change Index) which are estimated to be around 1. Between 2007 and 2008 technical efficiency and technical progress are generally declined, compared to those of 2006 and 2007. Wilcoxon's rank-sum test shows that there are statistically significant difference of TCI and MPI between two periods at the level of 5%, while there are statistically significant difference of TECI, PECI and SECI between two periods at the level of 5%.

• Management & Information Systems Review
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• v.19
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• pp.49-81
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• 2006

The private college education plays a crucial role both in training and supplying manpower needed for national economic growth and in increasing employability and personal labor earnings of individual workers. In oder for private college education to effectively respond to the rapid changes in industrial and occupational structures, it is necessary to secure appropriate level of investment funds and manage them efficiently. For this, it is required to discuss the structure, magnitude and management mechanism of the current private college education finance, changes in future demand for private college education and resultant changes in budget estimates, and new financial resources and allocation schemes. This study attempted to analyze current status and problems of private college education finance in Korea and, based on this analysis, to suggest future policy directions to improve private college education finance system. In order to make the private college education system in Korea competent and competitive enough to survive in international market, it is prerequisite to provide enough budget for the private college education and to manage the private college education finance in more efficient ways. First, for securing the adequacy and stability of investment budget for the private college education, it is recommended to 1) increase the government budget and put emphasis on the private college education; 2) diversify financial resources and induce financial contribution from private sector such as school juridical persons and enterprises. Second, for higher efficiency of financial management, it is recommended 1) make valid allocation standards and mechanism; 2) introduce competition system; 3) develop and utilize evaluation mechanism for the private college education finance to check adequacy, efficiency, accountability, and effectiveness; 4) apply consumer-oriented financial management scheme. In addition to the above policy measures, it is necessary to 1) make scientific forecasts of industrial and occupational structures periodically and apply these analyses to medium & long-term the private college education planning; and 2) redesign budget accounting system and develop the private college education performance indicators for the evaluation of accountability of the private college education institutions and administration institutes.

• Journal of Labour Economics
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• v.26 no.2
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• pp.1-30
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• 2003

The recent experience about self-employment shows three main trends: first, its share out of the total workers has steadily increased, recording 37.6% in 2001, implying its prevalence and importance; second, its share out of male workers has caught up female workers', implying its importance to males as well as females; and finally, during the recent Economic Crisis when there was mass layoff and large scale bankruptcy, its share rapidly increased, reflecting its role of a buffer to economic fluctuation. However, there have been few studies on self-employment, mainly focusing on what makes someone choose it as an alternative to being employed. This study analyzes the determinants of the duration to terminate self-employment, by applying the proportional hazard model to the Korea Labor and Income Panel Survey(KLIPS) by the Korea Labor Institute. The KLIPS started the first wave in 1998 with the 5,000 household sample (and about 12,000 individual sample of household members aged 15 and more). In this study, the first four waves are used for analysis. The average duration of 5,357 spells of self-employment is 130 months. It shows slight difference between males(124 months) and females(138 months) while it widely ranges over industries (296 months for agriculture industry while 50 months for restaurant and hotel industry). Estimates of the proportional hazard model of the self-employment duration show that females are more likely to terminate self-employment while it is not statistically significant. The effect of age at starting self-employment on the hazard shows the inverse V-shape, which implies that, until a certain age(47 years), the hazard become higher as aging while, since then, it become lower as aging. The level of education has a positive effect on the hazard, implying that more education is related to the higher probability to be employed. The measures of economic performances, annual sales and earnings, are positively related to continuing self-employment while hardship at the start of self-employment measured by several ways has a negative effect. Training before opening business has a positive effect on keeping on self-employment and its effects are different over its providers, significantly positive for public providers while insignificant for private providers. More and further research on self-employment is urgent in the rapidly ageing society. To help workers to be self-employed, more public assistance is necessary for education, training, financing, marketing, management, and human resource management in order to make the olders consider self-employment as a good alternative rather than an inevitable one.

• Journal of the Economic Geographical Society of Korea
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• v.12 no.4
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• pp.627-644
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• 2009

In the knowledge-based economy highlighting the importance of human capital, there has been a growing interest in human capital externalities as a fundamental engine of growth and development of a region. The purpose of this study is to analyze human capital externalities using 3-level hierarchical linear model(3-HLM), decomposing determinants of wages into three levels involving workers(level-1) nested within firms(level-2) nested within regions(level-3). This study separately estimates the effect of the average education level on the wages by three different schooling groups on the assumption that the intensity of knowledge spillovers varies with each group's schooling level. The main results are as follows; First, the coefficient of the average education level of a region shows 0.044, indicating that one-year increase in the average level of schooling could increase average individual earnings by 4.4%. Secondly, the external effects of human capital on three different schooling groups are considerably different, raising less than high school graduates' wages by 3.0%, college graduates' wages by 4.7%, and graduate schools' wages by 11.8%, respectively. Thirdly, well educated workers are much more sensitive to the variation of the regional education level than less educated ones when we apply the shares of each schooling group as alternative measures for the average level of education. Such findings of this study draw an implication that local governments could speed up regional economic growth in the knowledge-based economy by not only raising total human capital stock in a region but building the close networks that promote productivity-enhancing human capital external effects.

• Management & Information Systems Review
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• v.37 no.2
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• pp.187-207
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• 2018

This study examines the negative relationship between accounting conservatism and excess executive compensation and examines whether their relationship increases as managerial incentive compensation intensity increases. For this purpose, a total of 2,755 company-years were selected for the analysis of the companies listed on the Korea Stock Exchange from December 2012 to 2016 as the final sample. The results of this study are as follows. First, there is a statistically significant negative relationship between accounting conservatism and manager overpayment. This implies that managers' incentives to distort future cash flow estimates by over booking assets or accounting profits in order to maximize their compensation when manager compensation is linked to firm performance. In this sense, accounting conservatism can reduce opportunistic behavior by restricting managerial accounting choices, which can be interpreted as a reduction in overpayment to managers. Second, we found that the relationship between accounting conservatism and excess executive compensation increases with the incentive compensation for accounting performance. The higher the managerial incentive compensation intensity of accounting performance is, the more likely it is that the manager has the incentive to make earnings adjustments. Therefore, the high level of incentive compensation for accounting performance means that the ex post settling up problem due to over-compensation can become serious. In this case, the higher the managerial incentive compensation intensity for accounting performance, the greater the role and utility of conservatism in manager compensation contracts. This study is based on the fact that it presents empirical evidence on the usefulness of accounting conservatism in managerial compensation contracts theoretically presented by Watts (2003) and the additional basis that conservatism can be used as a useful tool for investment decision.