• Journal of Labour Economics
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• v.33 no.1
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• pp.53-84
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• 2010

This paper investigates the wage losses of displaced workers, using data from the Korean Labor & Income Panel Study. Previous Korean studies were only to estimate the wage losses shortly after job displacement. However, if the wage losses persist, those results seem to under-estimate the effects of displacement. Our findings show that the wage reductions are quite persistent 4 years after displacement. And much of this persistence can be explained by the lost labor market experience (lost opportunities to accumulate generalized skills) and additional job losses in the years following an initial displacement.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.15 no.9
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• pp.5487-5494
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• 2014

This study examined the relationship between income and the value of leisure to develop a more accurate model of the labor market without necessarily losing the primary merit of the received model. Moreover, with an improved understanding of the labor market dynamics, it can be seen that progressive era labor market legislation, which was designed to mitigate the effects of the bargaining power inequality in low wage labor markets, was in fact based on sensible economic foundations. These low-wage dynamics present an example of a positive feedback system or "vicious circle" at work in the economy. The market dynamics of the low wage sector push the wage away from the range that is consistent with a self-regulating market.

• Journal of Labour Economics
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• v.30 no.2
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• pp.87-118
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• 2007

Using KRIVET's Graduates Economic Activities Survey for 2005, this article examines the relationship between university ranking and labor market outcome, with a focus on wage differentials existing between provincial and Seoul metropolitan area university graduates. According to the analysis results, the average monthly wage for provincial university graduates was 1,747.7 thousand Korean won, which is 11.5% lower than that for graduates of universities in the Seoul metropolitan area. School effects on individual wage were estimated to about 12.2% after applying Hierarchical Linear Model technique, which means that university explains only an insignificant part of the total variance in wage among graduates. After controlling for the selection bias, the ability difference between the two areas, by applying the Heckman type 2SLS wage function and Neumark wage differential decomposition technique, the wage gap resulting from the segregation was not identified. This implies that, to a significant extent, the wage gap between provincial and Seoul metropolitan university graduates is attributed to the difference in productivity among individual graduates, rather than to the wage segregation. Also, the estimated wage function by applying Quantile Regression technique indicates that there does not exist any significant wage segregation difference by wage quantile.

• 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.

• Journal of the Korean Regional Science Association
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• v.32 no.2
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• pp.45-59
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• 2016

The purpose of this study is to analyze the static and dynamic change of wage differentials of women with disabilities in the Seoul local labor market. This study attempts to explain the double discrimination mechanism for disabled women and empirically gender discrimination and disability discrimination for them by using Oaxaca-Blinder decomposition analysis. In addition, using Juhn-Murphy-Pierce decomposition analysis. we analyze the wage differentials caused by the changed characteristics of disabled women and structures of discrimination at the Seoul local labor market. Data from the Panel Survey of Employment for the Disabled and Korean Labor and Income Panel Study for two years (2008, 2012) are used. According to the result, wage differentials of disabled women caused by disability discrimination is approximately 55% of total wage discrimination, whereas 45% is caused by gender discrimination during the period. Both observed and unobserved components move in the same direction to narrow wage differentials due to the disability discrimination and gender discrimination. Also the endowments in the Seoul local labor market about the changes of observed and unobserved components contribute more to narrow gender wage differentials, while these endowments widen disability wage differentials.

• Journal of Labour Economics
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• v.29 no.2
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• pp.29-66
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• 2006

This study investigates the structural change of wage determination within internal labor market that have occurred around the financial crisis in 1997 by using the personnel data(1996~2000) of a Korean large firm. We take the effect of performance-based pay system to apply on wage determination of workers using Mincerian earnings function estimation. After introducing the annual salary system in the firm, we did not find the fact that the wage effect of seniority decreases, but we found the wage effect of relative evaluation ratings increases. Then, this study identifies the importance of the reward strategy of firm in Korean internal labor market. Finally, we have concluded that although the firm acknowledged the positive effects of performance-based HRM practices, we have not obtained enough evidence on the transformation into such practices because the seniority-based HRM has been traditionally prevalent in the Korean internal labor market.

• Journal of Labour Economics
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• v.25 no.2
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• pp.109-128
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• 2002

Korean economy has contains many economic problems during past 2-3 years. One of these problems is unemployment rate rise rapidly. So Korean government has proposed many programs to deal specifically with male and female unemployment. But important things are not only administratoin's programs but also unemployed persons' reservation wage. Accordingly the purpose of this thesis is to analyze why reservation wages differ between male and female. The data we are going to use is the unemployment survey by researcher in 1998. By the result of the estimation of reservation wage functions, we are found two fact. The first is the principle of determinants reservation wage are different between male and female. In esimation of male reservation wage function, early wage and age, education level, unemployment period are very important determinants. But in esimation of female reservation wage function, early wage and education level, age, licence are very important determinants. The second is the reservation wage-setting mechanisms are different between male and fermale. Therefore we conclude that because Korean labor market is stratified labor market, reservation wage-setting mechanisms are much different by sex.

• Journal of Families and Better Life
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• v.7 no.1
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• pp.119-138
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• 1989

This study attempts to apply its result to decision whether housewives are in the labor market or not by investigating the level of reservation wage of them and the influencing factors on it. The purpose of this study is to analyse the effects by identifying , on the basis of theoretical models, the factors that influence reservation wage, and to predict future state of female employment. 1) The level of reservation wage of housewives showed significant differences by husband's income, household asset, housewife's education level, housewife's age, number of children division of husband in household labor, and by three marketization of housework. 2) The variables which affected reservation wage of housewife independently had influence on it in the following order: Husband's income, education level, age affect positively reservation wage of housewife, and a negative relation has been found between division of husband, level of commodity substitution and reservation wage of housewife. 3) Husband's income, housewife's education level, housewife's age, division of husband in household labor, level of commodity substitution give direct effects on reservation wage of housewife. Education level, age, number of children and family type influenced reservation wage of housewife through level of commodity substitution indirectly.

• Journal of Families and Better Life
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• v.18 no.2
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• pp.45-60
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• 2000

The purpose of this study was to examine the relationship between household productivity and market productivity of the married men in their early adulthood. Proxy variables of the household productivity were housework time, family cohesion·adaptability and family economic resource. Also proxy variables of the market productivity were job performance, job satisfaction and wage. The main result were as follows: First, men's housework time is insignificantly related to men's job performance, job satisfaction, and wage. But men's housework time is reduced as men's wage. Second, family cohesion·adaptability is significantly and positively related to the married men's job performance. The married men's job performance is significantly and positively related to the family cohesion·adaptability.

• Journal of Labour Economics
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• v.24 no.2
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• pp.63-94
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• 2001

Based on the human capital theory, the wage differentials among laborers are generated from the discrepancy of human capital stock which depends on individual laborer's decision. Hence, the wage differentials among laborers or between male and female are not the results of discrimination, but the results of individual choice. But, if the individual choice for human capital stock would be affected by the male-female discrimination, the explanation for male-female wage differentials base on the human capital stock has a bias. Actually, women have experienced in the discrimination on labor market participation due to gravity, parturition, infant rearing. Also, it is a fact that women have been discriminated against men in labor market owing to social, traditional, and cultural discriminations. If woman or her parent will less invest on human capital than man owing to the existence of discrimination in labor market, the 'expected human capital stock' instead of human capital stock will explain male-female wage differentials better. Therefore, in this study, we set up three models; first model includes working hours, industry, occupation, etc which are in general used as explanatory variables for wage decision, second model includes the variables which reflect the traditional human capital stock together with the first model's explanatory variables, third model employes the 'expected human capital stock' instead of traditional human capital stock. From the empirical test, the estimates of discrimination in three models are .93, .60, and, .48 respectively. This result implies that the male-female wage differentials in Korea can be explained by the discrepancy of 'expected human capital stock'. Since the discrepancy in expected human capital stock depend on the disparity in life-cycle labor force participation, male-female wage differentials can largely be attributed to male-female disparity in expected lifetime labor force participation.