• Journal of Labour Economics
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• v.32 no.3
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• pp.1-26
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• 2009

Using panel data from the Korean Labor and Income Panel Study(KLlPS), we examine the wage differentials between standard and Don-standard workers. To control for unobserved individual heterogeneities, we estimate the fixed effect models. Our results show that the OLS estimates are upwardly biased. We also find that labor unions and firm size are important determinants of the wage differentials.

• Journal of Labour Economics
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• v.37 no.3
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• pp.45-73
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• 2014

This study analyzes the effect of labor unions in Korean manufacturing industry on wage variance of men from 1988 to 2012. The results are as follows. Firstly, the wage variance within establishments is higher than that between establishments, and the wage variance between establishments in the non-union sector has increased significantly compared to that in the union sector since 2000. There is strong evidence that the latter is due to the solidarity wage policy of unions which has strengthened since the early 2000s. Secondly, the influence of labor unions on the wage structure within the union sector has gotten stronger recently despite the general drop in the labor union membership. Thirdly, since the mid-1990s labor unions have contributed to reducing the overall wage variance. It implies that decline in the unionization rate over the years in Korea is likely to have contributed to increasing wage inequality.

• The Journal of Information Systems
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• v.20 no.3
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• pp.187-207
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• 2011

As the IT labor captures an increasing proportion of the total labor, it is important to analyze the contribution of IT labor to national economy. Although there has been abundant research about the effect of IT investments, it is difficult to find a research about IT labor's economic contribution. Most prior studies on the effect of IT investment have focused on the effect of IT capital investment. This paper empirically explores whether and how IT labor makes contribution to Korean economy. And also this paper examines the economic contribution of IT experts and semi-experts in Korean industries over the 2000 to 2007 period, using production function framework and panel data set for 24 industries constructed from 'Input-Output table' and 'Research on Wage Structure Survey'. Based on the full sample of 120 observations, this study finds that a 1% increase in IT labor wage is associated with 0.042190% increase in added value. In the case of non-manufacturing industries on the sample of 50 observations, this study finds that a 1% increase in IT labor wage is associated with 0.074908% increase in added value. And in the case of IT experts (separated from IT semi-experts), this study finds that a 1% increase in IT expert's labor wage is associated with 0.013957% increase in added value of all industry. This study provides implication for policy makers and managers. The results suggests that non-manufacturing industries can capture further benefits by increasing investment in IT labor. Building on this study, future research should examine the impact of IT labor at a more detailed industry level and the firm level.

• Journal of Labour Economics
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• v.30 no.2
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• pp.1-31
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• 2007

The purpose of this paper is to analyse wage differentials between non-regular and regular works. Data from EAPS(Economically Active Population Survey) 2005 show that the monthly wage level of non-regular worker is only 63% of regular worker and thus there exist 37% wage differentials. However, these wage differentials do not control for hours of work, the amount of human capital, job characteristics, and other individual characteristics affecting wages. If these variables are added to the hourly wage regression equation, the wage gap between non-regular and regular workers drastically decreases to 2.2%. Furthermore, decomposition of the wage differentials by Oaxaca method shows that productivity difference between non-regular and regular workers explains up to 91% of the wage gap. This implies that the magnitude of wage discrimination against non-regular workers is at most 0.2% of hourly wage of regular workers. To control for unobserved individual heterogeneities more accurately, we also construct panel data and estimate wage differentials. The results from the panel data approach show that there is no difference in the hourly wages between non-regular and regular workers. In some specifications, the wage rate of non-regular worker is rather higher than that of regular worker. These results are consistent with economic theory. Other things being equal, workers with unstable employment may require higher wages to compensate their unstability. Firms are willing to pay higher wages if they can get more flexibility from non-regular employment. Empirical results in this paper cast doubt on the view that there is wage discrimination against non-regular workers in the labor market. Public policies should be targeted for disadvantaged groups among non-regular workers, not for non-regular workers in general.

• Korean Journal of Labor Studies
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• v.19 no.1
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• pp.35-64
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• 2013

This paper explores whether or not a minimum wage increase can do much to alleviate working poor. For this purpose, I analyze transitions from working poor to working non-poor and to unemployment or non-economically active states, using KLIPS (Korea Labor and Income Panel Study). This study uses the multilevel multinomial logit model to control unobserved individual heterogenous characteristics. It finds that a minimum wage increase tends to cause a higher probability of transitions from working poor to working non-poor. It is also discovered that a minimum wage increase is not negatively related with the persistence of the working state. It is concluded that minimum wage increases are likely to be effective in improving the living standards of the 'working poor'.

• Journal of the Korean Regional Science Association
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• v.39 no.4
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• pp.33-51
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• 2023

This study aims to investigate the changes in the employment structure of occupational groups by job characteristics and analyze the factors influencing wage premiums in local labor markets from 2010 to 2020. This study's analysis involves three primary steps. First, the occupational characteristics data from the Korea Network for Occupations and Workers are subjected to an exploratory factor analysis, and then a non-routine task intensity index is calculated by each occupations. Then, we conduct an exploratory analysis of changes in the distribution of employment by occupation from 2010 to 2020 by combining data from the Population Census with data from the Korean Labor and Income Panel Study to construct individual-level and regional-level data. Thirdly, we employ a hierarchical linear model to examine the individual-level and regional-level factors influencing wage premiums. Since 2010, the proportion of employment in occupations requiring non-routine task has continued to rise and now dominates the metropolitan labor market. Moreover, agglomeration effects resulting from urbanization produce a substantial wage premium for wage workers in occupations requiring non-routine tasks. This study seeks to provide policy implications to mitigate inequality and polarization in local labor markets by empirically analyzing the transition of occupational structure and wage inequality in relation to the local labor market context.

• Korean Journal of Social Welfare Studies
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• v.43 no.2
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• pp.345-366
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• 2012

This study analyze Family gaps(the wage gap between mothers and non-mothers) across the wages distribution in Korea using 2008 Korean Labor and Income Panel Study. Analysis models include Heckman's two stage estimation to control women's labor participation selection and Quantile regression method to examine the effects of children at different points of the wage distribution. The result indicates that first, comparing non-mothers, mothers with one child suffer statistically significant hourly wage losses at 25th, 50th, and 75th distribution, however not significant effects are found at lowest(10th) and highest(90th) distribution. Second, comparing non-mothers, mothers with two more children suffer statistically significant hourly wage losses at all distribution. Family gap differs across the wage distribution and highest family gaps are found at 25th distribution. With these results, the author suggests universal family policies to support mothers' labor participation and the reconciliation of work and family.

• Journal of Labour Economics
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• v.44 no.2
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• pp.71-90
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• 2021

This paper examines the effects of COVID-19 on the working hours and wages by employment types of wage workers. Using the Economically Active Population Survey-Supplementary Survey by Employment Types(2017-2020), I found that due to COVID-19, non-regular workers reduced their working hours more than regular workers, shrinking their opportunities to generate wage income. During the same period, the working hours and wage gap between new regular and non-regular workers widened, this was largely in part-time and short-term workers. As the working conditions change based on the initial level, these results show that efforts to improve their(new and short term workers) working conditions can contribute to mitigating labor market inequality.

• Journal of Labour Economics
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• v.34 no.3
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• pp.119-139
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• 2011

Using a establishment-worker matched data, this paper estimates wage differentials between standard and non-standard workers. Unlike previous studies, we estimate a fixed-effect model for the tree-way error-components that control for both unobserved individual heterogeneities and unobserved firm heterogeneities. The estimation results show that standard workers earn 6.5~8.4% mire than non-standard workers. This wage premium is 30~40% of the wage differential estimated from the OLS model. The results implies that a large proportion of the wage differentials between standard and non standard workers can be explained by unobserved firm and individual characteristics.

• East Asian Economic Review
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• v.18 no.1
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• pp.29-54
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• 2014

The purpose of this research is to identify the relation between OFDI (Outward Foreign Direct Investment) and wage inequality. In order to analyze various effects of OFDI on wages depending on the types of workers, the research classified laborers into four categories: permanent/skilled worker, permanent/unskilled worker, temporary/skilled worker, and temporary/unskilled worker. With controlling wage-determining factors such as education, labor union, individual fixed-effect, and industry-level effect, this paper examines whether OFDI attributes to the wage inequality among each type of workers. Moreover, this study also analyzes possible effects on wages that could vary according to the different characteristics of investments by classifying OFDI into two groups: OECD and non-OECD. The results reveal that OFDI makes certain differences according to skill-intensity and contract type in terms of influences on wages. It also shows that the effect of OFDI on wages is more subject to contract type than to skill-intensity. The classification of OFDI into OECD and non-OECD proves that effects on wages can vary by characteristics of the subject of investment.