• KDI Journal of Economic Policy
• /
• v.38 no.4
• /
• pp.45-76
• /
• 2016

This paper measures the extent to which South Korea participated in global value chains (GVCs) from 1995 through 2011 and scrutinizes the consequences of such participation on the Korean economy. To this end, the World Input Output Database is utilized to calculate GVC income, GVC employment, and value-added exports created by Korean and foreign industries. Our findings show that Korea radically internationalized its production activities during the sample period, widening the gap between gross exports and value-added exports. We also document that Korea's participation in GVCs has changed the value-added and employment structures in domestic industries in accordance with their comparative advantages while exacerbating the degree of wage inequality.

• East Asian Economic Review
• /
• v.23 no.3
• /
• pp.261-284
• /
• 2019

This paper explores the ramifications of international outsourcing on unemployment, income distribution and welfare, which is an important but yet unresolved issue. Using the well-known Harris-Todaro (1970) model of sector-specific unemployment, it shows that the effects of outsourcing on employment, income-distribution and welfare depend on the sector in which the outsourcing occurs, whereby sectoral factor intensities, unemployment-outsourcing response and the dynamic stability condition play crucial roles. In particular, outsourcing in the manufacturing (primary) sector widens (narrows) income inequality by increasing (decreasing) the sectoral wage gap and raising (not affecting) the rental income of the capital owners in the economy. Moreover, outsourcing in the manufacturing (primary) sector can be welfare-decreasing (is always welfare-increasing) due to its negative (positive) employment effect mitigating (reinforcing) the primary gains from the outsourcing.

• Journal of Industrial Convergence
• /
• v.5 no.2
• /
• pp.99-120
• /
• 2007

The purposes of this paper are to investigate mismatch in labor supply and demand on small and medium industries in Suwon region by conducting surveys to potential employees and employers, and to suggest alternative policy means to eliminate those mismatch conditions. Reasons of occupation change, difference in terms desired in occupation between potential employee and employer, understanding in mismatch, and measure of labor shortage by firms are analyzed in this paper. The report's recommendations to eliminate labor mismatch in small and medium industry are categorized into two groups: working conditions and occupation competence. Narrowing the working conditions gap, utilization of idle workers, establishment of flexible wage system are suggested to eliminate labor condition mismatch. In addition, potential employees need to meet working requirements by building up both wide use ability, occupation specific ability, and industry specific ability.

• Korean Journal of Social Welfare
• /
• v.59 no.2
• /
• pp.143-169
• /
• 2007

The major purpose of this study was to offer a comprehensive analysis of the changing trends and causes of poverty among urban wage earners' households from 1995 to 2005. In order to do that, this study used the micro data of "Income and Expenditure Survey of Urban Households" by the National Statistical Office(NSO) and GEE(Generalized estimating equation) regression model which is know as an appropriate method for the longitudinal and clustering data. The results show that (1) the numbers of poverty rate and poverty gap in recent years are even getting seriously worse than those in the IMF crisis. (2) Main characteristics of poor are female headed, old aged, low educated households, and having atypical working position. (3) Major determinants of poverty are also related to the variables as mentioned the above. (4) However, poverty reduction effect of public transfer increased preferably in recent years.

• Journal of the Korea Academia-Industrial cooperation Society
• /
• v.18 no.12
• /
• pp.494-502
• /
• 2017

This study examines how the Netherlands and Denmark lowered the increase in income inequality, at a period in time when income inequality in the world was deepening. This study investigates the level and trend of income inequality in the Netherlands and Denmark compared to those in Korea, the United States, Germany and Sweden. Using the method of the decomposition of changes in income inequality, this study identifies which factors are associated with the changes in inequality in these countries. It also explores which labor market policies mitigated inequality in these two countries. One of the major reasons for the reduction in earned income inequality in the Netherlands is the increased participation of women in economic activity through the increase in voluntary part-time working. In particular, the policies designed to promote equal treatment between full-time and non-regular workers contributed to the active participation of women in part-time work. Using active labor market policies, Denmark improved the proficiency of low skilled and low-wage workers, thereby alleviating the wage gap between high-income and low-income workers. Based on the experiences of the Netherlands and Denmark, this study discusses policy directions to mitigate income inequality in Korea.

• Journal of the Korean Regional Science Association
• /
• v.40 no.1
• /
• pp.53-67
• /
• 2024

Regional migration is a problem faced by all non-metropolitan areas in Korea, but the extent of migration varies depending on regional economic conditions. This study examines how the extent of youth migration varies depending on the economic conditions of their birthplaces. The results showed that youth migration was more severe in areas suffering from population decline and aging problems. The smaller the economy and the weaker the financial independence of the region, the more severe the youth migration. In particular, commercial, educational, and cultural facilities, except for medical facilities, were not able to curb youth migration. In addition, there was a significant wage gap between those employed in the metropolitan area and those employed in the regions, regardless of their origin. This suggests that non-metropolitan areas are caught in a vicious cycle of regional economic deterioration and youth migration.

• Journal of Labour Economics
• /
• v.28 no.1
• /
• pp.105-133
• /
• 2005

This paper attempts to verify that the economic gap between the workers in (large) firms with unions and those in (small and medium size) firms with no unions has recently been widened rapidly. A comparison of the wages of the workers belonging to the business establishments with and without trade union shows that the union premium has increased very sharply since 1997, after a relatively long periods with little changes. Also found is that union sector has witnessed a sharper decline in the share of the new entrants among workers as well as a faster increase of the average tenure of workers. These all indicate that the trade unions have forced a market equilibrium to move farther away from the competitive equilibrium in recent years.

• International journal of advanced smart convergence
• /
• v.9 no.3
• /
• pp.176-182
• /
• 2020

In this paper, to analyze the meaning of middle-aged men's economic activities, TEXTOM was used to analyze them. The data collection period is set from 2017 to 2019. Among the collected data, 100 refined words were converted into a matrix in which the degree of social connection was calculated, and the keyword network analysis was performed again with the NetDraw program. According to the study, middle-aged men put more meaning on their current work and family than their future retirement. Also, the related word commonly included in the top five for all three years was 'work'. Related words commonly included in the top 10 were 'old age', 'family', and 'work', and in 2018 and 2019, 'health' was included in the top 10. As a result of this, the middle-aged men living in the modern age are the generation who keep their families through economic activities and are increasingly interested in health and prepare for retirement. Therefore, policy support for stable economic activities is needed to improve the quality of life for middle-aged men. It is necessary to extend the retirement age, expand jobs and provide effective vocational training so that it can handle its role as the head of a family. In addition, measures should be taken to reduce the wage gap between highly skilled and low-skilled workers.

• KDI Journal of Economic Policy
• /
• v.34 no.2
• /
• pp.95-137
• /
• 2012

Inflow of foreign workers and immigrants increase the supply of unskilled labor in the economy. In measuring their impacts, an impact evaluation method produces unreliable estimates because a control group independent from their impacts is hardly found within the economy. This study adopts an aggregate factor proportions approach and measures the impacts by estimating the effects of skills proportion changes in labor supply on relative wages. The estimation uses two and three skills groups categorized by education levels. The study reveals that foreign workers and immigrants contribute to economic growth by a small margin while they significantly widen the wage gap between native skilled and unskilled workers. The result is based upon the fact that the existing foreign workers and immigrants are predominantly the least skilled groups. The estimates can be applied in predicting the impacts of labor inflow from North Korea which always remains as a possibility in Korea.

• Proceedings of the KSR Conference
• /
• 2003.05a
• /
• pp.159-164
• /
• 2003

The purpose of this article is to comparatively depict the organizational effectiveness of two rail firms based on the cognitive response of employees(group of drivers). To attain this purpose, several aspects of current personnel and organization management system and organizational culture are surveyed through questionaire and analyzed by SPSS. The questionaire includes two parts of items. First, it includes items on personnel-related factors such as evaluation system, job, wage, role, leadership and job satisfaction. Second, it includes items on organizational culture model suggested by Rousseau. The major findings are : 1) In general, the cognitive response of drivers in two firms concerning personnel-related aspects is to a certain degree negative. 2) The cognitive response of drivers in two firms concerning culture-related aspects is also awfully negative. 3) Job satisfaction of drivers in the firm A is highly related to role and leadership factors in terms of personnel-related aspects, on the one hand, and to achievement factor in terms of culture, on the other hand. In case of the firm B, job satisfaction of drivers is highly related to personnel evaluation factor as well as role and leadership factors in terms of personnel-related aspects, on the one hand, and to affiliation, power, and bureaucracy factors in terms of culture, on the other hand.