Since 2006, the Korean government has introduced a series of policies to create social service related jobs. Facing the new social risk of Jobless Growth, the newly launched Moon Jae-In administration had no choice but to include job creation in the social service sector as one of the 100 National Tasks for the next five years. The primary purpose of this study is to provide based on the last 10 years' experience a critical analysis of the new government's social service job creation policies. It has been proven that containing budget growth and creating jobs are not compatible goals. The government's control over social service prices has been persistent for the last 10 years serving the purpose of containing social service budget. The author argues that low quality jobs and depressed social service market are the results of such policy. The current problems created by the past policies and a number of new problems that the new government's plan to establish so-called Social Service Corporation might create are discussed, and a set of policy tasks including a social insurance for social services are suggested as alternative solutions for the old and new problems.
Since the 1990s rising intangible asset has become one of the main driving forces of investment stagnation and jobless growth in advanced income countries. We investigate how does the impact of firms' profitability on employment growth depends on the intangibility and whether the relationship between profitability and tangibility has complementarity. With data on Korean firms over the period 1988~2017 we investigate the effects of intangibility and profitability on employment growth based on the econometric approach of system GMM. The empirical results are as follows. (1) the profit rate has gradually led to lower employment growth, while it had positive effect on employment before the period of financial crisis. The estimated values and signs of profit rate coefficients varies from traditional industries to high/medium tech. industries. (2) the effect of increasing asset intangibility ratio on employment growth is negative and statistically significant. (3) the coefficients of interaction term of (profit rate ${\times}$ intangibility ratio) have significant negative values. It means employment effect of profit rate are becoming higher(lower) as intangibility ratio is at the lower(higher) level; profits rate and intangibility are not complement with each other. The results imply that to boost employment industrial policy which has the capacity to coordinate business intangibility is preferred to expansionary demand policy.
Journal of the Korea Academia-Industrial cooperation Society
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v.14
no.7
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pp.3253-3262
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2013
This study aims to analyse the regional disparity of the youth employment and to regional current states and characteristics via evaluation criteria for employment competitiveness. Summaries of the major results in this study are as following. Firstly, it has revealed that the regional disparity of youth employment is deepening. Secondly, after the analysis of employment competitiveness, the strongest regional employment competitiveness was found to be Seoul(0.622), followed by Chungnam(0.592), Ulsan(0.528), Gyeongbuk(0.514), Gyeonggi(0.507) and the region of employment risky is Jeonbuk. Lastly, the most influencing factors on the competitiveness of youth employment are supply factors and demand factors. Therefore, we must create new jobs of good quality, in order to reduce regional disparity and strengthen the competitiveness of youth employment. Also region of employment risky should require continuous monitoring. And the government should determine priorities of employment policies that suitable for regional characteristics. That is to say, the government should contribute to establishing the strategy of choice and focus.
This paper investigates the impact of the government R&D expenditure on the IT industry in Korea. The analysis of such impact can be used to derive the policy implications for the IT industry. The contribution of government R&D to the IT industry was analyzed based on the input-output table of the year 1990-1995-2000. The results show that the amount of the government R&D expenditure induced the IT industry to book twice greater production than it would have been in the absence of such government R&D expenditure during the period under investigation. It is also shown that job creation was strongly encouraged in the broadcasting equipment, software and computer-related services. During the period under the study, the composition of the workers in the IT hardware industry remained unchanged while the production increased significantly, which confirms the jobless growth in the IT hardware industry. The results of this study suggest that the government R&D should focus on improving the competitiveness of the intermediate good and parts industry.
As the 'jobless growth' is developing into a worldwide phenomenon, many countries try to recover a virtuous relationship between the growth and employment using various wage subsidy programs. This study focuses on wage subsidy to employers, labor demand-side wage subsidy for which one can think of two types-a tax credit(a flat wage subsidy) and a social insurance premium exemption(a proportional wage subsidy). For job creation, Korean government reintroduced a tax credit to small and medium-sized enterprises(SMEs) which have increased their employment level in 2010. But many experts has continuously insisted that it should be replaced with a social insurance premium exemption arguing only a few SMEs benefit from the tax credit as most of them are actually not paying any corporate or general income tax bills. However, as the insurance premium exemption accompanies an increase in the amount of budget with the coverage widen, one cannot confirm its cost effectiveness over the tax credit. This paper aims to provide a theoretical analysis to derive some formal conditions under which a social insurance premium exemption creates more jobs than a tax credit does given a budget constraint. We show that the former's dominance over the latter depends on whether there exists a dead zone of social insurance or not. If there does not exist a dead zone, a social insurance premium exemption is more desirable in many cases, whereas one cannot guarantees its dominance over a tax credit if there exists a dead zone. Therefore in order to realize its dominance, the government should minimize a dead zone so that most SMEs effectively benefit from the insurance premium exemption. In addition, applying discriminative exemption rates which reflect each firm's job conditions such as wage level and labor demand/supply sensitivity, the government try to enhance job creation effect.
Purpose - Before the economic reforms, the Chinese communication industry was poorly developed. After China's entering to WTO, the Chinese market were gradually opened, domestic companies will be faced with more and more pressures of competition from the world rival countries. As time goes on, the overseas telecommunications companies will occupy the Chinese market with the opening of China Telecommunications market to outside. So this paper focuses on problems and development methods based on the research about the present situation and development methods of communication industry(communication manufacturing industry and communication manufacturing industry) in China. Research design, data, and methodology - This study analyzed the policies of China's entering to WTO. This paper observed previous researches and made an empirical research on Chinese communication industry based on the governmental policies, strategies, books and previous papers with several kinds of clear data announced formally by China authorities. Results - Most recently, reorganization of the communication industry has brought good opportunities for the development of the communication manufacturing enterprises. This paper analyze policy changes of Chinese communication industry, the status of communication manufacturing industry and communication service industry. Finally, this study for further research analyzes the existing problems and puts forward some practicable measures to solve them. Conclusions - Looking ahead, with China's rapid economic development and steady deepening of reform and opening-up, the Chinese communication industry is faced with an even broader prospect of development. Chinese communication industry will be become the pillar one in national economy after 10 years development. Foreign communication companies accelerated investment and progresses to Chinese information and communication markets. Positive ones are more foreign investment, export increase, domestic innovation, communication industry made steep growth. But negative ones are obstacles of domestic companies' development and jobless rate increase etc. Second communication manufacturing industry made good development, but computer and TV related industry made decline in growth. Third, market sizes of internet and mobile services are growing but the size of wired communication services is downsizing gradually. To overcome them, the studies of components or parts of communication manufacturing industry are needed individually. Second China Unicom, China Telecom, China Mobile etc. are Chinese representatives. The sales volumes are very similar at the beginning, but now they are different and make big differences. So the analysis about, their differences and its impact, are needed.
Since Korea experienced a 'jobless growth' in 2003, creating jobs in the service sector has been considered as a top priority employment agenda. However, despite high employment outcomes in services, labor productivity remains stagnant in the service sector in recent years. A great deal of concern has been raised regarding newly created service jobs. Critics say low productivity in the service sector will harm the engine of economic growth in our country. This paper investigates the side of the demand for quality of labor, namely, the demand for skills as one of the main source of low productivity in the service sector. To analyze the changes of skills demand, this paper suggests the concept of job-based skills instead of worker-based skills and presents the way of constructing measures of job-based skills. By means of common factor analysis using job information in the Korean Dictionary of Occupational Titles, I extract 4 direct measures of job-based skills, such as cognitive skills, physical skills, fine skills, interactive skills. These skill measures are used to explore and to test how the skill structure changed in the service sector during 2002-2006. Empirical Results show that whereas the goods sector makes progress toward upskilling being represented by increased cognitive elements and softenization of tasks, the service sector, although high-educated workers increased, exhibits trends of deskilling in the sense of job-based skills during 2002-2006 in Korea. The trend of deskilling however does not seem a general aspect in the overall service sector. Rather, it seems a compound process that high-skilled jobs are created, but, on the other hand low-skilled jobs requiring physical labor are produced at the same time.
Journal of the Korea Academia-Industrial cooperation Society
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v.10
no.11
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pp.3363-3372
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2009
Continued jobless growth in economy, coupled with the current economic recession, is aggravating the situation of job market. In order to create more jobs and reduce the economic gap in a society, an independent creative firm of a sole entrepreneurs is suggested as an alternative mean. Understanding entrepreneurial motivations of a sole entrepreneur will be helpful in developing educational programs on starting an independent creative firm and in establishing a relevant government policy. This study, therefore, proposes a new model on entrepreneurial motivations in the independent creative firm and performs case study. The results of the study show that the personal environment and the personal characteristics of entrepreneurs have much effects on motivation of starting the independent creative firms. Among the personal environments, entrepreneurs' educational backgrounds, work experiences, and personal networks have great influences on entrepreneurial motivations. The processes of sustained entrepreneurship involve: (a) the determination of business ideas and goals, (b) the inception of a new business and managerial activities, (c) the entrepreneur's assessment of both intrinsic and extrinsic rewards of business performances, and (d) the adjustment of business ideas and goals in accordance with the results of the assessment. The results of the study could be applied in developing educational programs and consulting guidelines on independent creative firms and in establishing government's supportive policies on the firm.
Recently, the youth employment crisis which is characterized by high unemployment and low employment rate has been considerably serious, while jobless growth has been observed. However, job shortage and unstable labor status of the old are also main issues. To solve this problem, the job creation and deferred retirement for the old has been proceeded. Consequently, it has caused to the intergenerational war on job due to equity of job creation for the youth. However, it is not desirable that the problem would be diagnosed and the policy would be set up although little attention has so far been paid to test empirically this kind of substitution relation. Thus, this research has been analyzed whether the employment relation between the youth and the old is substitution or not. The analysis method is panel data analysis in 15 OECD countries including Korea(1990~2000). Major findings are as follows. First, only half of the youth and the old works. It provides the evidence that the employment crisis is not a problem of special generation but all of them. Second, employment relation between generations followed by panel analysis is not substitution relation. This findings can be interpreted as evidence that it is unlikely to solve the youth employment matter even though the government encourages the early retirement.
Asia-Pacific Journal of Business Venturing and Entrepreneurship
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v.13
no.6
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pp.15-25
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2018
As jobless growth became the new norm and the average life expectancy continues to increase, it is difficult to find quality jobs regardless of gender. In this situation, entrepreneurs who can take charge of creating quality jobs have begun to gain attention from governments. As a result, many startup support programs have been introduced and operated. In Korea, various government-sponsored startup support programs have been in operation since the late 2000s, and the number of startups has increased since. However, there are many cases where they are not able to maintain their business for a long time because such programs often lack expertise and experience. Mentoring programs for startup founders is becoming an attractive solution to these problems. However, when we look at the responses of entrepreneurs, they found the mentoring program beneficial only when it was well planned and operated. Otherwise, they found the program unhelpful. Although there are many startup mentoring programs in various fields, there is little research on whether customized mentoring that matches the characteristics of startups and entrepreneurs are effective. In this study, we study the effects of startup mentoring on mentoring satisfaction. Our model also intends to identify the moderating effects of entrepreneurs' characteristics and provide guidance to future startup mentoring.
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