• Title/Summary/Keyword: Unconditional Quantile Regression

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Inter-Regional Wage Gap and Human Capital in Korea - An Unconditional Quantile Regression Decomposition Approach - (수도권과 비수도권의 임금격차와 인적자본 - 무조건 분위회귀 분해법의 적용 -)

  • Kim, Minyoung;Lim, Up
    • Journal of the Korean Regional Science Association
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    • v.33 no.2
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    • pp.3-23
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    • 2017
  • This study aims to understand how human capital is related to the inter-regional wage gap between the capital region and the non-capital region in Korea. We focus more specifically on whether the inter-regional wage gap is due to high levels of human capital in the capital region or due to high returns to human capital in the capital region. The decomposition method based on the unconditional quantile regression was used to examine how the relationship between human capital and the inter-regional wage gap varies along the wage distribution. When first estimating earnings functions from the two regions to apply this decomposition method, we included not only conventional indicators of human capital, such as education and on-the-job training, but also occupational skills including cognitive-interactive skills, technical skills, and physical skills. As a result, other things being equal, a large part of the inter-regional wage gap was explained by the human capital variables. Although the composition effect of the human capital variables existed in all the wage quantiles, the more important factor was the wage structure effect of the human capital variables. In addition, among the various human capital variables, the wage structure effect of years of education was a key factor in explaining the inter-regional wage gap. This study is meaningful in that it shows that the relationship between human capital and the inter-regional wage gap may vary depending on the wage quantiles.

Outdoor Workers and Compensating Wage Differentials: A Comparison across Regions and Wage Levels (실외노동과 보상적 임금격차: 지역별·분위별 추이)

  • Jeong, Sangyun;Song, Changhyun;Kim, Yeonwoo;Lim, Up
    • Journal of the Korean Regional Science Association
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    • v.38 no.2
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    • pp.3-20
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    • 2022
  • The purpose of this study is to explore the heterogeneity of compensating wage differentials for outdoor workers, under the threat of climate change and heatwave, by region and by wage quantile. This study conducted Oaxaca-Blinder decomposition, multiple regression analysis by region, and unconditional quantile regression analysis using the Korean Working Conditions Survey, which provides individual-level information on the working environment and worker's characteristics. The implications derived from the results of the study are as follows: For most variables, the endowment effect and the price effect were greater for indoor workers, while experience and gender played a role in narrowing the wage gap; The compensating wage differentials for outdoor workers were confirmed to be 2.4% nationwide, depending on the region however, the compensating wage differentials varied from 5 times of national average to nothing statistically significant; The higher the wage quantile, the greater the compensating wage differentials for outdoor workers, and statistically significant monetary compensation was not identified for some low-level outdoor workers. This study is meaningful as an early study that revealed the heterogeneity of compensating wage differentials for outdoor workers and suggested further research on the topic.

Glass ceiling in arts and culture professionals: Between J and R industries (문화예술분야 전문인력에 대한 유리천장효과 분석: J산업과 R산업 중심으로)

  • Chan, Jong-Sub;Heo, Shik
    • Review of Culture and Economy
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    • v.21 no.2
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    • pp.3-28
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    • 2018
  • This study focuses on analyzing the glass ceiling effect in arts and culture professionals through the quintile decomposition applied to the RIF unconditional quantile regression and Oaxaca-Blinder decomposition technique. From the industrial viewpoint, we divide arts and culture professionals into cultural contents professionals(large category J industry) and arts professionals(large category R industry). For our analysis, we employ the pooling data of 'Wage Structure Survey' from 2009 to 2016. Our results are summarized as follows. First, as OLS wage decomposition showed that the gender wage gap among the arts professionals was lower than cultural contents professionals, but the discrimination portion of total gender wage gap was larger. Second, from quintile regression decompositions, the glass ceiling effects of two types of professionals showed different results. Cultural contents sector was observed with the "steady glass ceiling effect" as the portion of the discrimination was continuously increased, while the arts sector was observed with the "limited glass ceiling effect" as the discrimination had drastically increased in the 80s and 90s.