The purpose in this study is to analyze the effect of expected public pension assets (or social security wealth) and retirement incentives on retirement behaviors of two wage earners households. For the purpose of the study, an empirical analysis was conducted. In the empirical step, it was found that the empirical results were significant for men, but not for women namely, statistically asymmetric if behaviors of two couples are interdependent. The cause for the statistically asymmetric results were then determined. The Bivariate Probit model was used for estimation in the first step and the KLIPS(Korean Labor and Income Panel Study) was used as data for estimation. According to the empirical analysis, the results showed statistically significant asymmetry for men, however not for women, in expected public pension assets and other retirement incentives, non-wage assets, age difference, spouse's health status, spouse's monthly wages per hour and aging of their spouse In this study, cause of statistically asymmetric result in asymmetric complementarities of leisure of couples were found, then explained through different methods of comparison from the most recent studies. First, spouse's cross wage elasticity of self leisure demand(retirement) was calculated and determined whether complementarities of leisure of couples is positive or negative. Then, the degree of complementarities of leisure was distinguished in comparison with the relative size of two cross elasticities. Thus, men have relatively strong complementarities of leisure. But for women, it may roughly cancel out due to the substitution effect and the income effect. Therefore, women have relatively weak complementarities of leisure.
Journal of the Korea Academia-Industrial cooperation Society
/
v.13
no.7
/
pp.3007-3015
/
2012
This study gave an insight into senior life plans and life satisfaction of the middle aged employee over 45 and under 60 years of age, listed in the KLIPS data for 2001 (4th year) and 2008 (11th year), so as to grasp levels of senior life plans of the middle aged employee as well as the longitudinal and short term effects of senior life plans on life satisfaction. The study findings showed as follow: First, For the period of years, the middle aged employees' health got worse and jobs got instable. Second, economic and physical senior life plans of the middle aged employee turned out below an average of three points which means preparations made below the normal level, whereas senior life plans in terms of relation and leisure and social activities came out with more than an average of three points, respectively, which means preparations made above the normal level. Third, as a result of looking into longitudinal effects of the 2001 senior life plans on life satisfaction, the level of senior life plans for leisure and social activities got higher, life satisfaction stayed higher in the year of 2001. In 2008, however, the higher level of economic plans for senior life came out with a higher rate of life satisfaction. From a short-term perspective, therefore, leisure and social activities to enjoy life impose a great impact on life satisfaction, whereas from a long-term viewpoint economic plans for senior life is regarded to be of greater importance.
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.
Using the Korean Labor and Income Panel Study 2001 (KLIPS 2001), this paper examines gender differences in the return to education in Korea. On average, there is little difference in return to education between male and female workers. However, this paper provides evidence that the impact of education on wages is greater for female workers compared to that for male workers using three different estimation strategies. First, a simple cohort analysis shows that the estimated returns to education for male and female workers have different patterns by age cohort and this is the main reason we observe little gap in average returns to education between men and women. Second, we find that college degree has a significant impact on women's labor market outcomes, while there is little gain for men in terms of wage levels by having college degree. Finally, when controlling unobservable individual ability level with test scores, education has no significant impact on male workers' wage levels, while the impact of education on wages is considerably large for female workers. All three findings support that the impact of education on labor market outcomes is greater for female workers compared to that for male workers as many researchers have found in other OECD countries.
This paper analyzes the effectiveness of social networks in finding jobs and estimates the value of job search network using the Korean Laber and Income Panel Study (KLIPS) dataset and utilizing the Difference-in-Difference Propensity Score Matching (PSM) methodology (Heckman et al., 1997). While the wide use of social networks in the Korean labor market is often perceived as 'nepotism,' this study confirms that social networks, by serving as an effective information transmitter between job search and recruitment, make a significant contribution to improving the adequacy of job matching in the domestic labor market. In order to verify the effectiveness of using social networks for getting jobs, this study looks into the cases of labor turnover using social networks and also not using it. In the aspect of individual satisfaction improvement relating to workplace and job duties, both cases of turnover turn out to experience an increased satisfaction by 2~3 points (on a 100-score scale). Meanwhile, as for the educational and technical adequacy improvement, no positive effects are found in the case of turnover without social networks, whereas the educational and technical adequacy improvement turns out to increase by 2.13 and 2.52 points, respectively, in the case of turnover using social networks. The effect of income increase through turnover using social networks registered 40,074 Korean won per month (as of 2010), which can be considered as the result from the improved educational and technical adequacy. Of all things being considered, the value of job search network per wage worker in the Korean society is estimated to be 18.72 million won in terms of life-cycle wage improvement, and 758.2 scores in terms of the improvement of working life satisfaction. Provided that the cash value of satisfaction score 1 is equivalent to 'n' times 10,000 won, the aggregate value of job search network is estimated to be 18.72+7.582n million won, which means the total amount of costs that a wage worker in the Korean society willingly pays to maintain and manage job networks for lifetime.
This study purported to examine the effects of precarious employment and social capital on the changes of self-rated health status among the middle aged and the young-old population in South Korea. The study analyzed 12 year follow-up data generated by the Korean Labor and Income Panel Study(KLIPS 6-17), which included 10532 employed subjects aged 55 to 75. Multi-level growth curve modeling was performed by fixed and random effect models using STATA 13.0 program. Afterwards, Hausman test was performed, which resulted in support of the estimation by fixed effect model. The results showed that a day labor position was significant factor affecting the deteriorated changes of self-rated health status over time. In addition, wage, weekly working hours, and private/relational social capitals were also found to be significant factors affecting the changes of the self-rated health status. The results supported the divergence hypothesis as well as the cumulative advantage theory. Efforts should be made to develop and implement various employment support policies and social service programs to alleviate the health inequality of the employed workers over their middle-aged to young-old period.
There are not many studies on job satisfaction among older workers living alone. This study examined the determinants of job satisfaction for older workers living alone, and the job satisfaction was analyzed by the demographic-social factors, the health-psychological factors, and labor factors regarding to sex and ages. Korean Labor and Income Panel Study(KLIPS, 18th) used in this study, and the subjects were 308 older worker living alone and over 55 years old. The determinants of job satisfaction for male respondents were happiness, organizational commitment, and duration of work. Howver, the determinants of job satisfaction for female respondents were age, happiness, organizational commitment, and levels of skill. Income, organizational commitment, employment stability, and duration of work were the determinants for 55-64 years old. Education, organizational commitment, and levels of skill were the determinants for 65-74 years old. Education and happiness were the determinants for 75 years old and over. Age, income, happiness, organizational commitment, employment stability, duration of work, and levels of skill were the determinants of job satisfaction for all respondents. Finally, this study proposed the policy and practical implications for improving of job satisfaction among older workers living alone.
The aim of this study was to examine whether health status is different according to employment status and income level in wage-earners. We analyzed wage-earners of 2199 men and 1194 women aged 30-64 years, using data from the 2006 Korean Labor and Income Panel Study(KLIPS). The difference of health status according to employment status and income level was compared with the multiple logistic regression and the standardized concentration index of ill-health. The risk of ill-health was high when waged-earners had low income. The same is true for poor employment status when their employment status was unstable as in manual laborers, irregular workers, temporary, daily workers or part-time workers. furthermore, the wage-earners with lower income and a relatively disadvantageous employment status showed the lowest health status compared to other groups. Ill-health was relatively more concentrated in lower income group and poor employment status. This study identified the existence of health inequality among various employment status of wage-earners. It is suggested that policies that deal with the inequality in social class may have an important impact on the health of the population.
This study examines how the unobserved heterogeneity of workers, measured by residuals of the wage equation, affects the entry into self-employment using KLIPS 1998-2008. Following Joona and Wadensjo(2013), we treat the residuals as unobserved ability and find that both workers with higher and lower ability are more likely to become self-employed. However, this U-Shape relationship no longer holds when the sample is divided into males and females. The study also finds that the relationship between ability and entry into self-employment has changed over time, and that ability is positively associated with the performance of self-employed.
The purpose of this research is to compare housing wealth effects of home-owning single income couples (SIC) and dual income couples (DIC) on their non-durable consumption and to assess the effects by location, age groups, housing structure type, debt-to-asset ratio and employment status. Using the Korean Labor and Income Panel Study (KLIPS) of 2014, this empirical study identified 1,198 SIC households and 1,044 DIC households, and employed multiple regression analysis. The main results reveal that the difference of financial portfolios between SIC and DIC households was little but housing wealth effects were stronger among SIC households than DIC counterpart. It's evident that housing wealth effects were conspicuous for SIC and DIC households who were headed by wage earners aged over 40s, and resided in apartment outside the Seoul Metropolitan Area. However, household debt became a determinant in contradicting housing wealth effects of SIC and DIC households. While the household financial dimension was in proportion to income, DIC households didn't gain much financial security due to increasing expenditure. Further, this research imply that liquidity constraints explicitly posed a more serious threat to SIC households whose dependence on housing asset is larger than their counterpart.
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