• Journal of Labour Economics
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• v.42 no.1
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• pp.1-42
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• 2019

In this study we find that relatively high minimum wages should make the employment ratios of youth, old, and woman lower very significantly in those regions concerned, futhermore, make the overall employment ratios of those regions lower also by using a proxy variable, the Regional Minimum Wages-Half Median Wages Ratio which represents well the very stable differential structure of wage distributions among regions in Korea. In large Cities those effects become much stronger. But we find also that those effects on the rates of regional unemployment are somewhat double-faced except the case of youth because of the probable generating of many discouraged unemployed among the old and women. So, we can conclude that because of the differential regional economic situations it is not sustainable to increase the overall minimum wages uniformly and excessively and strongly necessary to explore ways toward introducing the proper system of regional minimum wages.