• Journal of Labour Economics
• /
• v.36 no.3
• /
• pp.97-128
• /
• 2013

This paper analyzes the changing factors of income inequality by approaches to income sources focusing on the effect of husband-wife labor income relation and employment ratio change on income inequality. The level of contribution of income source to income inequality showed that the inequality of labor income between husband and wife(especially the husband's income) takes great importance. Also, the covariance of labor income of husband and wife showed growing trend and changed toward the same direction. As a result of the decomposition of the labor income covariance, it was found that the change in husband-wife employment ratio explained the covariance change better than the change in labor income inequality.

• KDI Journal of Economic Policy
• /
• v.43 no.2
• /
• pp.1-22
• /
• 2021

The effects of social distancing measures on income distributions and aggregate variables are examined with an off-the-shelf heterogeneous-agent incomplete-market model. The model shows that social distancing measures, which limit households' labor supply, can decrease the labor supply of low-income households who hold insufficient assets and need income the most given their borrowing constraints. Social distancing measures can therefore exacerbate income inequality by lowering the incomes of the poor. An equilibrium interest rate can fall when the social distancing shock is expected to be persistent because households save more to prepare for rising consumption volatility given the possibility of binding to the labor supply constraint over time. When the shock is expected to be transitory, in contrast, the interest rate can rise upon the arrival of the shock because constrained households choose to borrow more to smooth consumption given the expectation that the shock will fade away. The model also shows that social distancing shocks, which diminish households' consumption demand, can decrease households' incomes evenly for every income quantile, having a limited impact on income inequality.

• 사회경제평론
• /
• v.31 no.2
• /
• pp.39-69
• /
• 2018

We measured industrial labor income shares and investigated their determinants. Excluding industries where non-wage earners are not countable, we constructed 22 industry labor income shares from 1993 to 2015. Even though labor income shares in manufacturing industries declined more than in service industries, the economy-wide decline was not driven by structural changes but by within-industry effects. We found that rise in capital-labor ratio, R&D intensity, export dependence, and irregular job ratio contributed to the fall in labor income shares. When we examined manufacturing industries separately, overall results were about the same. But in that case we had additional findings that the rise in import dependence and outsourcing ratio lowered labor's shares, while minimum wage increases raised them.

• Journal of Labour Economics
• /
• v.40 no.3
• /
• pp.57-77
• /
• 2017

To prevent the disincentive of labor supply under the current welfare system, we suggest the safety income system, a Korean version of negative income tax. Under the proposed system, for example, a household with four members whose annual income is less than 50 million wons will get financial support from the government. Under the safety income system, labor supply increases and so does the gross domestic product. The disposable income of low-income households increases, which alleviates the income gap among households. Analyzing the Household Income and Expenditure Survey data, we show that under the safety income system the disposable income differentials among households are reduced much more than under the current welfare system or under the universal basic income system.

• Journal of the Chungcheong Mathematical Society
• /
• v.27 no.2
• /
• pp.219-225
• /
• 2014

I use the dynamic programming approach to study the optimal consumption and investment problem with regime-switching and constant labor income. I derive the optimal solutions in closed-form with constant absolute risk aversion (CARA) utility and constant disutility.

• Journal of the Chungcheong Mathematical Society
• /
• v.33 no.1
• /
• pp.103-112
• /
• 2020

This paper investigates the portfolio selection problem with flexible labor choice and stochastic income flow where the unit wage flow is governed by a stochastic process. The agent optimally chooses consumption, investment, and labor supply. We derive the closed-form solution by applying a martingale method even with the stochastic income flow.

• Journal of the Korean Home Economics Association
• /
• v.36 no.11
• /
• pp.209-218
• /
• 1998

The purpose of this study was to conduct the review of female labor suply, and thus, to provide useful theoretical and empirical frameworks for future studies related to female labor supply. Based on the theory of the allocation of time, the process of individual labor supply was systematically reviewed. Participation Probit/Logit, Tobit, and Selection B;ias Corrected Regression were considered in estimating the function of female labor supply which modifies the selection bias. Based on the previous empirical results, wage rate, asset income, husband's income, the level of eduction, and child-related variables such as the presence of child and the number of children might be considered for the empirical specification of female labor supply.

• Journal of the Economic Geographical Society of Korea
• /
• v.5 no.2
• /
• pp.187-207
• /
• 2002

This study investigates the wage determination process of regional labor markets in order to understand the regional dimension of labor market processes in Korean metropolitan cities. Since the financial crisis in late 1997, the interplay between labor market restructuring such as unemployment and skill polarization and income disparity has been shaped by the labor market process in the metropolitan cities. This is also closely related to the fact that both industrial restructuring and expanding information technologies in the metropolitan region have reshaped the labor demand structure and finally resulted in structural unemployment due to skill mismatch and spatial mismatch and wage inequality across different occupations. In addition, since wage determination process clearly has a regional dimension, wage determination and its influence on income profile in a certain regional labor market need to be understood by investigating its labor market characteristics including labor supply and demand structure, industrial changes, changing unemployment, etc. This is why labor market policy as a regional policy needs to be redefined and it can be much enhanced by geographical investigation on regional labor market.

• 한국사회정책
• /
• v.23 no.1
• /
• pp.95-123
• /
• 2016

As Korean society grows rapidly older, a systematic analysis of the determinants of labor supply behavior among the elderly becomes a prerequisite for designing more effective senior employment policies and income security regime for the elderly. Literatures review shows that a majority of previous researches have been ignoring the problem of "endogenous predictor" especially when it comes to the estimation of the effects of the two key variables, education and non-labor income, on labor supply decisions among older people. They have failed to take into consideration the unobserved heterogeneities which might affect both labor supply decisions of the elderly and their levels of education and non-labor income, which means, according to some econometric literatures, that the estimated coefficients of the two predictors can be inconsistent. The paper tries to redress the endogeneity problem by employing a panel logit model with data from the 1st. to 4th. wave of the KLoSA(Korean Longitudinal Survey of Ageing) to estimate the effects of key predictors on the probability of getting jobs among older people(ages of 60 or older). Both a random effects and a fixed effects model reaffirms that non-labor income has a negative effect on the chances of being employed. And a random effects model shows that the effect of education is also negative, as has frequently been reported by previous studies. That means the effects of education and non-labor income on elderly employment remain negative after the effect of unobserved heterogeneities is controled for and the problem of endogenous predictors is redressed through an appropriate panel data analysis. These findings mean, in turn, that when Korean baby-boomers, who had acquired an unprecedentedly higher level of education and were expected to enjoy ever-larger amount of non-labor income than their preceding generations, retires in near future, their incentives to work will become much weaker and the lack of labor-force and the burden of financing increased public pension expenditure will become more troublesome. The paper concludes with recommending some policy initiatives helpful to solve these expected problems.

• Journal of Family Resource Management and Policy Review
• /
• v.19 no.2
• /
• pp.101-125
• /
• 2015

Dual-income family is becoming more common in today's society. This study will look at how dual-income households balance between work and life. Specifically, it will study how the families allocate time for work, where they use labor power, and for domestic work and leisure, where they recharge labor power. The data source for this study was the 2009 Korean Time Use Survey. The main results of this research are as follow: The study confirmed that many husbands and wives they still spend much time working. There are differences to spend in restoring labor power; many husbands spend leisure time and many wives spend household labor. Generally in a typical dual-income household, the husband works and enjoys leisure and the wife focuses on working. It was found that the husband and wife in a dual-income family feel time deficient is due to long working hours.