• Asia-Pacific Journal of Business
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• v.13 no.1
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• pp.277-288
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• 2022

Purpose - This study analyzed the determinants of local unemployment rate in Korea using panel data from 16 metropolitan cities and provinces from 2000 to 2018. Design/methodology/approach - We use a dynamic spatial panel model that considers characteristics of the regional unemployment rate such as the common factors effect, spatial dependence, and serial correlations. Findings - The local unemployment rate is affected by the past and present values of the national unemployment rate. And it is significantly affected by the past local unemployment rate and the past neighboring unemployment rate because spatial dependence and serial correlations are clearly present. In addition, when the industrial structure diversity and labor productivity were high, the regional unemployment rate decreased, and when the education level was high, the regional unemployment rate increased. Research implications or Originality - In order to reduce regional unemployment rate, it is necessary to plan and establish regional customized industrial structure policies under the stance of diversification rather than specializing the regional industrial structure and accompany improvement of the quality of education with the number of years of education. In addition, the redistribution of labor from low labor productivity sectors to high labor productivity sectors through technology development will help to reduce the local unemployment rate.

• The Journal of Asian Finance, Economics and Business
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• v.6 no.2
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• pp.269-275
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• 2019

This study intended to examine the relationship between inflation and unemployment rate in Indonesia during 1987 to 2018 period. The study applied a quantitative method using Vector Error Correction Model (VECM) in order to comprehensively understand the causality between inflation and unemployment rates. The data were collected from various main sources including the World Bank, Central Bank of Indonesia, and Central Bureau of Statistics (BPS). The findings showed that inflation has a one-way relationship toward unemployment in Indonesia and it occurs at the third lag. Impulse Response Function (IRF), shows that the inflation rate are fluctuating in response to the shock of unemployment. The unemployment rate responses to shocks from inflation initially increased until it is eventually diminished. It shows that the shocks caused by the impact of inflation were only in the short term. Further, inflation in the three previous lags will have consequences for the unemployment rate in the year. Lastly, both in the long run and short run, unemployment did not affect inflation rates. These findings suggest that high inflation in Indonesia is determined the rising price of basic commodities and fuel. In addition, most companies in Indonesia applying capital intensive so that employment growth in Indonesia is small.

• Korean Business Review
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• v.12
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• pp.275-301
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• 1999

The year of 1998 was a very hard time for the most of Koreans. The rate of unemployment, which had averaged between 2 and 2.5 percent for many years, has continued to rise as the industrial production declined from the first quarter of 1998. The seasonally unadjusted unemployment rate recorded high of 8.4 percent in the first quarter of 1999, and the number of the unemployed as 1.75 million. On the other hand, the unemployment rate in Kangwondo used to be smaller than the nation-wide rate. However, this should not be taken as evidence that Kangwondo's economy used to perform better than others, because the participation rate also used to be smaller in Kangwondo than other regions. Anyhow, the unemployment problem is one of urgent issues in Korean society. The purpose of this paper is to overall review Kangwondo's unemployment counterplan and to make priorities about what we have to do against the long-run unemployment. In addition to implementing unemployment countermeasure of the central government, Kangwondo has to devise in itself unemployment counterplan reflecting local attributes.

• Journal of Labour Economics
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• v.23 no.1
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• pp.1-25
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• 2000

This paper investigates why is the unemployment outflow rate into employment so high and why do the precarious workers have short unemployment spell after the economic crisis. Using the matched panel data of the Economically Active Population Survey. This paper points out that, in spite of the fact that most spells of unemployment are quite short, a very substantial portion of the unemployed experiences multiple unemployment spells over a period of time. Also recurrent unemployment leads to very long total durations of unemployment. This evidence implies recurrent unemployment is as important as long-term unemployment under the poor social safety net system.

• Korean Journal of Social Welfare
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• v.56 no.3
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• pp.159-181
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• 2004

This study examines the realities and causes of youth and new college graduate unemployment, and seeks some assignments for mitigating youth and new college graduate unemployment. An analysis of the realities and causes of youth and new college graduate unemployment is summarized as follows. First, youth unemployment rate, which rapidly increased after the IMF economic crisis, slowly decreased after 2000, but was still somewhat higher in 2002 than that before the IMF. Second, new college graduate unemployment rate, which rapidly increased after the IMF economic crisis, slowly decreased after 2000 and became a similar level to that before the IMF economic crisis, but the number of the unemployed new college graduates highly increased after the IMF. Third, an analysis of the causes of youth unemployment shows that economic growth and the employment elasticity of economic growth negatively affect the unemployment rate, and the rate of entrance into colleges positively affects the unemployment rate. Fourth, an analysis of the causes of new college graduate unemployment demonstrates that economic growth and the employment elasticity of economic growth negatively affect the unemployment rate, and the increase rate of new college graduates, the college graduate/youth population ratio, and the time trend positively affect the unemployment rate. These results suggest several implications for mitigating the unemployment rate of the youth and new college graduates. First, in order to increase labor demand, emphasis must be placed on preparing economic conditions which can raise economic growth rate and on fostering industries and occupations which have high employment elasticity. Second, in the aspect of labor supply, it is necessary to adjust the number of new college graduates corresponding to labor demands in industries. Third, in order to redress the mismatch between the demand and the supply of the youth labor market, attention should be paid to remedying educational systems such as the activation of vocational education and training in middle and high schools and the reformation of college education to match the education and training provided in colleges and the skills requirements of the world of work, and preparing a unified program to support the youth unemployed systematically and synthetically.

• KDI Journal of Economic Policy
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• v.40 no.3
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• pp.1-44
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• 2018

This paper studies the macroeconomic effects of an enhancement in unemployment benefits in Korea. In particular, I quantify the welfare effect of two specific policy chances which have been mainly discussed among policymakers in recent years: increasing wage replacement rates by 10%p and extending maximum benefit durations by one month. To this end, I build and calibrate an overlapping generation model which reflects the heterogeneity of the unemployed and the specificity of the unemployment insurance (UI) system in Korea. The quantitative analysis conducted here shows that extending maximum benefit durations by one month improves social welfare, whereas increasing wage replacement rates by 10%p deteriorates social welfare. Extending maximum benefit durations is applied to potentially all the UI recipients, including unemployed workers whose wage before job loss is relatively low and whose marginal utility is relatively high. However, increasing wage replacement rates is applied to only a small number of UI recipients whose wage before job loss is relatively high, while the increase in the UI premium is passed onto all of the employed. This study suggests that given the current UI system and economic environment in Korea, it is more desirable to extend maximum benefit durations rather than to increase wage replacement rates in terms of social welfare.

• 재활복지
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• v.17 no.4
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• pp.127-149
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• 2013

This study analyzed the hazard of unemployment and the influencing factors on the rate. Data came from the Panel Survey of Employment for the Disabled(PSED), 2010-2012, which is a longitudinal survey for 5,092 disabled people in Korea. For the main purpose of this study, the life-table method was used for describing the patterns of unemployment duration by disabled, and the cox proportional hazard model was used to identify significant factors on the unemployment duration. The results were as follows. First, according to the life table analysis, the unemployment rate to remain until the longest period of unemployment(25month) is 90.5%, and the rate of entry into the labor market was only 9.5%. Overall, the unemployment maintenance rate was high, the unemployment escape rate decreased after 12month. Second, looking at the results from the cox proportional hazards model, the unemployment escape possibility were increased for those who are male, are non-public benefit recipient with disability, have mild disability, and have less discrimination experiences. With these results, disability discrimination act which can reduce the disability discrimination in employment site should be strengthened. Also, the scheme of Nation Basic Protection Program should be modified to attract the employment of recipients with disability. Finally, policy targets having employment escape difficulty, such as women with disability, people with severe disabilities should be departmentalized. And employment service is provided in accord with the individual needs and characteristics.

• Journal of the Korean Society of Costume
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• v.65 no.7
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• pp.86-100
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• 2015

This study is to investigate the relationships between heel height and macro-economic factors - recession and unemployment; and to analyze the time lags reflecting economic factors on heel height index using U.S. data. The life-history evolution theory was applied to propose the relationships studied. The data for the heel height measurements of women's shoes - pump style only - were obtained from US Vogue fashion editorial sections on spring and fall editions from 1950 to 2014. I divided the heel height by the length of the shoes in order to standardize the data. Total of 1581 samples were used, and heel height data were aggregated to create a yearly average. To explore the relationships between macro-economic factors and heel height, this study used OLS of Stata 13 program. The main findings show that unemployment rates influenced heel height for three years in a positive direction. Furthermore, the effects of unemployment rate from two years ago on the current heel height were very close to being on a significant level.

• Journal of Labour Economics
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• v.23 no.1
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• pp.167-190
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• 2000

The Korean labor market is changing very fast after the economic crisis. In the middle of 2000, the unemployment rate has decreased to the less than 4% and wage income has recovered to its pre-crisis level. However, the number of employed and the labor market participation rate has not yet recovered, and income inequality is widening. In this situation, there is some concern about the potential for the histeresis phenomenon, which occurred in Europe after 1970, and means that a high unemployment rate could continued regardless of price levels. Therefore, focus should be placed on the labor market policy for the 21 st century reducing structural unemployment through creation of jobs in order to solve problems of unemployment and income distribution simultaneously.

• Journal of the Korean association of regional geographers
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• v.7 no.2
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• pp.1-16
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• 2001

This paper is to examine the trends and structures of unemployment as well as its spatial patterns in Germany. Germany once achieved a well-developed employment system and full employment. Since 1970, however, unemployment has been one of the major issues in Germany. During the last three decades the unemployment rate has risen to unprecedented levels and stayed high. After the German unification, especially, labor market is characterized by the mass unemployment and the structural selective process of unemployment to be imposed on German workers. And regarding to the spatial patterns of massive unemployment, this study shows critical disparities between South and North Germany being overlapped with new disparities between East and West Germany. We can explain the regional differentiation of unemployment on the base of typical mismatch of labour market allocation. It is also shown that massive unemployment is related not only to policy shifts in labor market but also to structural transformation after the unification.