• Journal of Labour Economics
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• v.34 no.3
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• pp.81-117
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• 2011

This study examined how firms responded to the articles regarding the prohibition or correction of discrimination against fixed-term workers in the 'fixed-term worker protection law', which has been effective since July of 2007 in Korea. Data used cone from the Korean Workplace Survey, and a difference-in-differences method was employed for the identification of the causal effect, noting that the 'discrimination prohibition law' has been applied to firms over stages based on their sizes. The empirical results show no strong evidence that the law played a positive role in reducing differentials between permanent workers and fixed-term workers in the areas of wage and various employee benefits, including the provision of severance pay, annual leave, and 4 major social insurances for fixed-term workers. A more thorough future analysis on the causes of the insignificant impact of the law in some employee welfare benefits, along with supplemental policies, is needed to have the law achieve the desired goal of removing discrimination at the workplace.