• KDI Journal of Economic Policy
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• v.24 no.1
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• pp.45-112
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• 2002

Enhancing labor market flexibility is currently posted as one of the major economic policy objectives in Korea. However, the labor market effects of specific policies to achieve it have not been sufficiently investigated. This paper takes up the issue of employment protection deregulation and surveys and empirically analyzes its policy effects. Academic researches generally confirm that deregulation tends to promote labor turnover and employment of the disadvantaged groups such as the youth and female by raising the overall efficiency of the economy, but its effects on unemployment is not clear. In the Korean labor market, both job creation and destruction, and labor mobility have increased after the economic crisis of 1998, but they can not be seen as deregulation effects as the changes are confined to the temporary and daily employment whose labor markets are least regulated whereas the regular employment market remains virtally unchanged. Such results suggest that labor market deregulation need to be pursued consistently as a policy goal since the labor demand condition shift and the need for expanding regular employment necessitates it, for which detailed policy agenda for removing market inefficiencies should be carefully arranged.

• The Journal of Industrial Distribution & Business
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• v.12 no.3
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• pp.31-41
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• 2021

Purpose: The purpose of this paper is to analyze the impact of the minimum wage policy and the employment labor force in Myanmar by exploring firms' actions such as installing supplementary machines to substitute for labor resources and by addressing gender issues in employment. Research design, data, and methodology: This paper applies a fixed-effect estimation method by using the World Bank's enterprise panel data set surveyed in Myanmar. Results: Findings suggest that the minimum wage reduces both full-time and part-time employment, while the first minimum wage policy increases overall female employment. The adverse impacts are more pronounced for female employees of Joint Venture enterprises and enterprises located in the less-populated regions. Investment in capital such as equipment and machinery increase to substitute for labor after the minimum wage policy implementation; as a result, full-time employment slightly decreases. Conclusions: Appropriate measures concerning the minimum wage policy must be prepared by the government and institutions related to the labor union to serve the well-being of employees. Government of Myanmar should fix the minimum wage in a reasonable period based on the fiscal year for both employers and employees to prevent possible issues and losses resulting from the minimum wage being set.

• Korean Journal of Social Welfare
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• v.63 no.3
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• pp.187-211
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• 2011

This study examines the effects of active labor market policy on unemployment by pooled cross-section time series analysis utilizing panel data of 18 OECD countries, and seeks implications for improvements of the Korean active labor market policy. The results of the analysis are summarized as follows. First, active labor market policy negatively affects unemployment rates. Second, vacational training program among three major active labor market programs has a negative effect on unemployment rates. Third, employment service program and employment subsidy program have partially negative effects on unemployment rates. The implications for the Korean active labor market policy are as follows. First, it is necessary to expand and systematize active labor market policies. Second, vocational training programs should be systematized and professionalized according to labor demand. Third, employment subsidy programs need to be planned and carried out under the condition of minimizing a substitution effect, a displacement effect and a deadweight loss effect. Fourth, employment service programs need to be developed and carried out under the consideration of not only the reduction of unemployment rates but also the prevention of re-unemployment, mitigation of income inequality and improvement of productivity.

• Journal of the Korean Geographical Society
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• v.51 no.1
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• pp.41-56
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• 2016

This study investigates the employment and spatial mismatch as a significant acting factor of deepening urban poverty and analyses the placeness of regional labor market that the more efficient place-based labor market intervention needs to take into account. The change of unemployment rate as a regional labor market outcome in metropolitan cities is determined by the dynamic interaction between disequilibrium of labor supply and demand and employment mismatch according to various labor market conditions and its process is certainly differentiated across the metropolitan regional labor markets. In addition, it is analyzed that during the employment suburbanization the spatial mismatch puts differentiated impacts on different labor groups through human capital requirements and industry-selective job opportunities. As a result, because this whole process works with its unique process within individual regional labor markets, in order to link between urban poverty and employment mismatch and to promote problem-solving labor market intervention, we need to develop place-based policy based on the placeness of regional labor marekt.

• Journal of Applied Reliability
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• v.17 no.1
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• pp.38-49
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• 2017

Purpose: The purpose of this study is to introduce the assessment model for industrial accidents prevention policy. Methods: 10 years of industrial accidents data are explored through EDA approach. Case control study is tried in order to assess the effectiveness of the measures taken by Korea Safety and Health Agency, Civilian, and 'Ministry of Employment and Labor'. Propensity score matching is used to match the characteristics of the two groups compared, and then case control study is again conducted. Next, logistic and Poisson regressions are used to assess the risk factors. Results: According to case control study involvement of 'Korea Safety and Health Agency' and 'Ministry of Employment and Labor' were not effective, but Civilian was. Propensity score matching leads to the same conclusion. Poisson regression reveals the impact of the risk factors on the industrial accidents. Industrial accidents occur more often as the number of employees grows. Mining, farming, fishing, 'transportation storage and telecommunication' and forestry have a higher level of industrial accidents but service industry has a lower level. It is odd that more involvement of Korea Safety and Health Agency, Civilian, and Ministry of Employment and Labor means more industrial accidents. Conclusion: 'Korea Safety and Health Agency', Civilian, and 'Ministry of Employment and Labor' seem to visit those industries with more industrial accidents.

• 한국사회정책
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• v.24 no.4
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• pp.185-222
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• 2017

The purpose of this study is to investigate the effect of labor market policy on fiscal soundness of welfare state. The analysis was carried out using cross-sectional panel data regression analysis, stepwise mediating effect analysis and system GMM designed by Baron and Kenny(1986) based on the data from 1985 to 2015 for 20 OECD countries. In setting up the analysis model, this study considers the interaction effect between active and passive labor market policies as well as the time sequence of the outcomes which have been overlooked in the previous studies. The result shows that labor market policies have significant impacts on the fiscal condition of welfare states, which is measured as the levels of national debt in this study. Especially the expenditure on active labor market programs has a positive effect on improving the fiscal soundness of welfare states by promoting the employment rate. In contrast, passive labor market programs expenditure is negatively associated with employment rate growth and it exacerbates the burden of national debt in the short-term. However, when active labor market programs and passive labor market programs are combined, the negative impacts by passive pabor market policies on the fiscal soundness of welfare states are off-set. Therefore this study addresses that although the expansion of the labor market policies can be inimical to the fiscal soundness of welfare states in the short-term, in the long run, they can have effective roles in securing and promoting the fiscal soundness of the welfare states by promoting the employment rate.

• 한국사회정책
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• v.19 no.3
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• pp.149-183
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• 2012

This article aims to analyze main features of activation policy and compare major programmes in terms of their impact on employment performances in Korea. Since the introduction of National Basic Living Security Act in 2000, a series of activation policies have been in place for social assistance recipients, low-income employees, and youth unemployed by means of providing tailored employment and social services via in-depth counselling and case management. These activation policies carry both enabling and demanding elements: requiring programme participation in exchange for public assistance benefit receipts on the one hand, and providing various social services to remove barriers to employment through case management on the other hand. Therefore, it merits attention to analyze how various features of activation programmes affect employment outcomes, the effectiveness of delivery system and policy instruments as well. In analyzing employment outcomes of activation policy of which main characteristics lie in provision of employment and social services, this article points out the features and policy instruments of the activation policy that contribute to labor market entry of public assistance recipients and low income employees. In addition, it also delineates the determinants of exit from benefit receipts. Results from statistical analysis show that activation policy with intense employment service helps both benefit recipients and low income employees enter into the labor market at a faster rate. However, tailored social service provision enables social assistance recipients to exit from benefit receipts. These results suggest theoretical and policy relevant implication in regards to redesigning the delivery mechanisms and service instruments of activation policy.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.12
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• pp.283-293
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• 2021

To verify the employment impact of two-directional FDI, the study analyzes panel data composed of 26 OECD countries from 2006 to 2018 by using the system GMM. Furthermore, we decompose domestic employment into types of industries and skill compositions to identify the heterogeneous employment impact. The results show that inward and outward FDI at lag one period promote domestic employment at the overall level. In terms of workers' skill levels, lagged inward FDI significantly persistently promotes high-skilled workers' employment, likewise, the positive employment impact also appears with a time lag in low-skilled labor subgroups. Outward FDI, on the other hand, initially inhibits both high- and low-skilled labor demand, but then changes to a positive effect in the highskilled labor subgroups. Although there is a time difference between inward and outward FDI, it has a significant and positive impact on employment in the manufacturing and service industries. The results indicate that the relationship between manufacturing and service employment is a mutual substitute. To attract international investors, governments should promote a favorable investment climate and maintain stable economic growth. Because low-skilled labor is more susceptible to changes in FDI, policy measures are required to ensure employment stability.

• Journal of Labour Economics
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• v.37 no.3
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• pp.75-99
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• 2014

This study analyzes the initial effect of meister high school policy on labor market by DID based on the fact that most of the meister high schools that had its first graduates in 2013 were not newly established but assigned by government. We estimated employment and real hourly wages as quantitative measures and intent to remain in labor market as qualitative one. The results shows that, the meister high school policy increased the employment rate but didn't do real hourly wages and intent to remain. Therefore, meister high school policy can be assessed to be successful in short-term only in quantitative aspects. The study has its contribution as the first study of estimating the net effect of the policy.

• KDI Journal of Economic Policy
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• v.30 no.2
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• pp.185-223
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• 2008

This paper considers a heterogeneous agent dynamic general equilibrium model and analyzes effects of an increase in labor income tax rate on labor market and the aggregate variables in Korea. The fiscal policy regarding how the government uses the additional tax revenue may take the two forms: 1) general transfer and 2) earned income tax credit (EITC). The model features are as follows: 1) Workers are heterogeneous in their productivity. 2)Labor is indivisible, hence the analysis focuses on the variation in labor supply through the extensive margin in response to a change in fiscal policy. 3) The incomplete markets are introduced, so individual workers can not perfectly insure themselves against risks related to stochastic changes in income or employment status. 4) The model is of general equilibrium, hence it is equiped to analyze the feedback effect of changes in aggregate variables on individual workers' decisions. In the case of general transfer policy, the government equally distributes the additional tax revenue to all workers regardless of their employment states. Under this policy, an increase in the labor income tax rate dampens work incentives of individual workers so that the aggregate employment rate decreases by 1% compared with the benchmark economy. In the case of EITC policy, only employed workers whose labor incomes are below a certain EITC ceiling are eligible for the EITC benefits. Unlike the general transfer policy, the EITC induces low-income workers to participate the labor market to be eligible for EITC benefits. Hence, the aggregate employment rate may increase by 2.7% at the maximum. As the EITC ceiling increases, too many workers can collect the EITC but the benefits per worker becomes too little so that the increase in employment rate is negligible. By and large, this study demonstrates that EITC may effectively raise the aggregate employment rate, and that it can be a useful policy tool in response to the decrease in the labor force due to population aging as observed in Korea recently.