• Journal of Labour Economics
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• v.37 no.3
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• pp.1-44
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• 2014

This paper investigates the effect of household formation on the mapping from wage inequality to income inequality, which usually is smaller than the former. Added workers, income pooling among household members, and shared consumption are the factors that make income distribution less inequal than wage distribution, and the effect of income pooling appears to be the greatest. This suggests than the increase in nuclear families and the resulting increase of old families have a potential effect of worsening income inequality at the absence of sufficient private income transfers among the two households. A simple counter-factual estimate indicates that income pooling among the children's and parents' households can efficiently and sizeably reduce income inequality.

• Journal of Labour Economics
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• v.30 no.3
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• pp.77-102
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• 2007

This paper compares income and consumption for their relative effectiveness in measuring inequality. Although income inequality has received more attention in the literature, the permanent income hypothesis links consumption to welfare more directly than income. To the extent economic agents smooth their consumptions, consumption inequality is a better indicator for an economy's welfare inequality, and it is especially so when income volatility is high. The empirical analysis in this paper indicates that the income and consumption patterns among the Korean wage/salary worker households are quite consistent with the permanent income hypothesis. Further, it is found that consumption inequality tends to be lower than income inequality, and more importantly, that the two inequalities do not always vary in the same direction. These results call for stronger emphasis on consumption inequality in inequality literature.

• 한국노년학
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• v.31 no.2
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• pp.321-341
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• 2011

The purpose of this study is to examine income composition elements, poverty rate, and the effects of the transfer income on poverty decrease comparing grandparents-grandchildren households with living alone, couple, and living with adulthood children. Data come from the first(2005) and the second(2007) Korean Retirement and Income Study(KReIS) and the effects of poverty decrease is examined through reconstruction of LIS income definition. The main findings are as follows. First, the total income of the grandparents-grandchildren in 2006 is the lowest and about one-fourth of the households living with adulthood children. Second, the labor income of all households are increasing but the only grandparents-grandchildren's labor income is decreasing. Third, three of ten in grandparents- grandchildren households are in poverty, the poorest households's type is the grandparents-grandchildren in 2006. Fourth, four of ten in grandparents-grandchildren is able to escape poverty after including private and public transfer income. Especially, the effects of the public transfer income in grandparents-grandchildren households is lower in 2006 than in 2004, thus the role of public income security is strongly needed. Existing research was that the poorest type among the elderly group was the living-alone households, but this results show that grandparents -grandchildren households are the poorest group. Thus, income security policy is highly needed for poor skipped-generation households.

• Asia-Pacific Journal of Business
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• v.10 no.4
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• pp.137-151
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• 2019

Using Korean Labor and Income Panel Study data, this paper estimates nominal wage rigidity in Korea by industry from 2005 to 2017 and evaluates the level of inefficiency of Korean labor market. And, after estimating employment volatility by industry using the Labor Force Survey at Establishments data for Korea, we combine the nominal wage rigidity and the employment volatility estimates and analyze the effect of nominal wage rigidity on employment volatility in Korea from 2011 to 2017. If the level of wage rigidity is high, it may be hard for the labor market to be in the equilibrium, and therefore, the market may have inefficiency. We find that the inefficiency of the labor market in Korea have increased from 2005 to 2017 and the industry of accommodation and food service activities has the highest level of inefficiency over the period. We also find that one-percent-point increase in wage rigidity increases employment volatility by 2.3-2.9 percent and the positive effect is bigger for workers with part-time and temporary jobs. The result implies that firms may adjust their labor costs by changing the number of casual workers, rather than permanent workers, when the labor market suffers from a high level of wage rigidity.

• East Asian Economic Review
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• v.24 no.4
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• pp.313-336
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• 2020

In this paper, I review evidence on changing global specialization in labor-intensive exporting. Production of apparel, footwear, furniture, and related products are how many low-income countries first enter export manufacturing. Just as China's rise as a powerhouse in these goods supplanted a role previously occupied by the East Asian Tigers, the world may again be on the cusp of significant change in where labor-intensive goods are produced. China's prowess in these sectors peaked in the early 2010s; its share in their global exports, while still substantial, is now in decline. Mechanisms through which the global economy may adjust to China's graduation into more technologically sophisticated activities include expanded labor-intensive export production in other emerging economies and labor-saving technological change in products currently heavily reliant on less-educated labor. Available evidence suggests that the first mechanism is operating slowly and the second hardly at all. As a third mechanism, China may in part replace itself by moving labor-heavy factories out of densely populated and expensive coastal cities and into the country's interior. Such a transition, though still in its infancy, would mirror the decentralization of manufacturing production in the U.S. and Europe, which occurred after World War II.

• Korean Journal of Social Welfare
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• v.46
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• pp.60-88
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• 2001

This paper examined the impacts of the welfare reform program, California Work Pays Demonstration Program(CWPDP), implemented in 1992. CWPDP was designed to move welfare recipients into the labor market by reducing the amount of AFDC grants and one-third earned income disregard. The evaluation of the policy impacts on the welfare recipients was conducted in two areas: employment and earnings. This study used a subset of a database created by the California Department of Social Services, and University of California Data Archive and Technical Assistance. The subset is composed of 3,936 AFDC-FG cases selected in LA County: 1,311 control cases and 2,625 experimental cases. The control group was kept on the AFDC rules as of September 1992, while the experimental group was subject to AFDC rule changes implemented under CWPDP. The analyses of the employment and earnings using the random effects probit model and the random effects regression model, respectively, indicated that CWPDP did not effectively encourage female heads to participate in the labor market. It also revealed that CWPDP did not significantly increase the earnings of female heads. The findings imply that the disincentive structure of the public assistance program is not the main barrier preventing female heads from getting jobs and leaving the welfare rolls. Rather, participation in the labor market and exit from welfare is mainly determined by their own demographic characteristics and the economic cycle. Based on the findings, policy implications are suggested on the National Minimum Protection Program in Korea. Those include a flexible exemption rate for the earned income of beneficiaries, affordable child care services, and guaranteed public jobs.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.16 no.9
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• pp.5843-5849
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• 2015

This study analyzes the factor demand structure of sweet persimmon as a part of finding out cost cutting measures. Income and cost data from 2001~2013 Agricultural Income Survey are used for placing the translog cost function and estimating price elasticies and cross elasticities of labor, capital and intermediate input. The result shows that own price elasticities of all factors are small in absolute terms. Additionally the result indicates capital and intermediate input cannot be a substitution for labor, which is a top-line cost-share. It means that the demand for labor cconstitutionally can't be reduced in a short time. This implies that cost reduction should be done focusing on intermediate input, particularly on fertilizer and materials which have higher price elasticity of demand.

• Journal of Labour Economics
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• v.41 no.4
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• pp.31-62
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• 2018

Using matching and difference-in-differences estimation method, this study estimates causal effects of health shocks on employment and income of full-time workers aged 40-55. Acute hospital admissions lower significantly the employment probability and earnings. The changes in employment and earnings persist up to three years after the health shock. The economic impacts of health shocks vary by socioeconomic status and job characteristics among individuals. Irregular workers are more likely to leave their jobs after health shocks than regular workers. Among irregular workers, the probability of leaving labor market after health shock decreases with the size of the firm.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.3
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• pp.1395-1403
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• 2021

The COVID-19 pandemic is having an adverse impact on Bangladesh's economy by affecting millions of people's life and hampering their income sources. The outbreak of COVID-19 has created more pressure on the labor market. The pandemic reduces employment opportunities as most of the companies have stopped their recruitment process to cut their operational costs, which increases the rate of graduate unemployment in Bangladesh. Hence, this study aims to investigate the impact of COVID-19 on graduate employability in Bangladesh that adversely affects the income of families and eventually the nation's economy. A literature review has been conducted from secondary sources to evaluate the impact, which shows that the rate of graduate unemployment increased from 47% to 58% in 2020 with an expected annual loss estimated at $53 million. Findings also reveal that the prime reasons for graduate employability are low demand and huge supply of graduates in the labor market, lack of professional skills of graduates, ineffective education system, etc. The study suggests that the government of Bangladesh should develop some policies to overcome this problem such as ensuring employment subsidies, implementing skills development programs, improving labor market flexibility, initiating credit programs for generating employment, and developing entrepreneurial ecosystems in Bangladesh.

• The Journal of Industrial Distribution & Business
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• v.13 no.7
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• pp.37-45
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• 2022

Purpose: Leisure time is an intrinsic part of the work-life balance that enables people to rejuvenate their energy and provides a platform to maintain their health while sustaining their productivity levels. The purpose of this study is to investigate the effects of changes in leisure consumption culture on the modern economy through various research materials. Research design, data and methodology: To have completeness in published systematic reviews and meta-analyses, the use of the standard Preferred Reporting Items for Systematic Reviews and Meta-Analyses checklist is essential and the present research selected this research design. Results: This research figured out that individuals who spend most of their leisure time watching TV have been shown to experience lesser satisfaction in their job designation and less happiness overall and also found that Leukocyte Telomere Length is influenced by the type of leisure an individual engages in. Conclusions: Overall, this research points out that the income effect may provide an inverse relationship between work time and labor in that high income from labor makes an individual less inclined to work to make the same money they made before the increased benefits. It is a narrative that may need further research in finding the principles that govern leisure in the labor force.