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Problems and Improvements in Research on the Employment Effect of Minimum Wage

최저임금의 고용효과에 관한 연구의 문제점과 개선방향

  • 박철호 (충북대학교 경영학부) ;
  • 강상구 (중앙대학교 한국전자무역연구소)
  • Received : 2018.07.30
  • Accepted : 2018.10.20
  • Published : 2018.10.28

Abstract

Recently the Korean society has suffered severe conflicts over the rate of increase in the minimum wage, while academics have failed to provide appropriate standards through reliable research. Recent foreign studies using natural experimentation or meta-regression analysis show that the increase in minimum wage has little effect on employment. Domestic studies are not yet numerous in number, and they present different conclusions on employment effects depending on the data used, sample period, and research model. To properly assess the employment effects of the minimum wage, future studies should minimize measurement errors in minimum wage dataset, and appropriately consider the endogenous change of minimum wage, economic situation and trends of employment changes. It is also necessary to utilize natural experiment methods before and after the increase of the minimum wage.

Keywords

Minimum wage;Employment effect;Low-wage workers;Poverty line;Monopsony

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