• Journal of Labour Economics
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• v.40 no.4
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• pp.1-31
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• 2017

Recent empirical studies highlight the importance of between-firm or between-establishment factors in rising wage inequality. Examining the establishment-level data from the Mining and Manufacturing Survey of 2000-14, this paper finds that overall between-establishment wage dispersion has increased in Korea. However, unlike other OECD countries, the divergence occured in the lower tail of the wage distribution. Dispersion in labor productivity exhibits a similar movement, therefore explains the widening wage dispersion. In contrast, the link between wages and total factor productivity is much weaker, which appears to be associated with inefficient capital reallocation. I also find much heterogeneity in the productivity-wage relationship across productivity distribution. The most productive establishments turn the smallest portion of productivity gains into wage increases.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.16 no.9
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• pp.5897-5905
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• 2015

This paper investigates the differentials in productivity and growth performance between small and medium size and large size firms in Korean manufacturing industries. According to the empirical analysis based on the Mining and Manufacturing Survey of Statistics Korea, this paper finds the following facts. First, the level of contribution of capital deepening on the growth rate of output(value added) is relatively greater in the small and medium size firm group, while the level of contribution of total factor productivity on the growth rate is relatively greater in the large size firm group. Second, the productivity polarization among the firms has increased relatively greater in the large size firm group over the past decade.

• Journal of Labour Economics
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• v.37 no.3
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• pp.45-73
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• 2014

This study analyzes the effect of labor unions in Korean manufacturing industry on wage variance of men from 1988 to 2012. The results are as follows. Firstly, the wage variance within establishments is higher than that between establishments, and the wage variance between establishments in the non-union sector has increased significantly compared to that in the union sector since 2000. There is strong evidence that the latter is due to the solidarity wage policy of unions which has strengthened since the early 2000s. Secondly, the influence of labor unions on the wage structure within the union sector has gotten stronger recently despite the general drop in the labor union membership. Thirdly, since the mid-1990s labor unions have contributed to reducing the overall wage variance. It implies that decline in the unionization rate over the years in Korea is likely to have contributed to increasing wage inequality.

• The Korean Journal of Applied Statistics
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• v.27 no.7
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• pp.1207-1217
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• 2014

2011 Korean Economic Census is the first economic census in Korea, which contains text data on menus served by Korean-food restaurants as well as structured data on characteristics of restaurants including area, opening year and total sales. In this paper, we applied text mining to the text data and investigated statistical and technical issues and characteristics of Korean text mining. Pork belly roast was the most popular menu across provinces and/or restaurant types in year 2010, and the number of restaurants per 10000 people was especially high in Kangwon-do and Daejeon metropolitan city. Beef tartare and fried pork cutlet are popular menus in start-up restaurants while whole chicken soup and maeuntang (spicy fish stew) are in long-lived restaurants. These results can be used as a guideline for menu development to restaurant owners, and for government policy-making process that lead small restaurants to choose proper menus for successful business.

• Journal of Labour Economics
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• v.29 no.3
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• pp.25-48
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• 2006

In this study, the wage differentials between standard and non-standard workers are estimated using the data from the Establishment Employment Survey of 2003. The estimated wage differentials between standard and non-standard workers become greater controlling for the fixed effects of establishments. The within-establishment wage differential is estimated to be 20.7% between male standard and male non-standard workers in unorganized establishments controlling for establishment heterogeneity. However, the estimated overall wage differential is reduced to 6.8% due to the high wages of non-standard workers in large size establishments and the low wages of standard workers in small size establishments. This difference between 20.7% and 6.8% reflects the between-establishment wage differential. In organized establishments, the wage differential becomes larger, 21.8%, between male standard and male non-standard workers. For the male workers, the greatest wage differential between standard and non-standard workers is found in unorganized large size establishments: it is 35.9%. In organized establishments, it contracts to 25.8%. The additional estimations on the probability of becoming non-standard workers are done. For the male sample, the probability of standard workers to become non-standard workers in unorganized establishments is 6.0 percentage points higher than that in small size organized establishments. The probability is 20.7 percentage points higher for the female sample. However, the signs of the interaction terms of union and large size establishments are all negative. While the effect of large size establishments reduces the effect of union on the probability to 7.3 percentage points for the males, it reduces the probability to 16.0 percentage points for the females.

• Journal of Labour Economics
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• v.34 no.1
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• pp.71-101
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• 2011

Using an establishment-level panel data drawn from the employment insurance administrative DB, this study investigates the relationship between elderly and youth employment in Korea. The primary focus of interest is whether or not the ageing of workforce and an increase in elderly employment have negative impacts on youth employment. In the regression using the full sample, we find the evidence that a movement in elderly employment and ageing workforce are positively related to youth employment. However, we do not find consistent evidence of the positive impact of the elderly employment on youth employment in the estimations using sub-samples divided by various criteria.

• KDI Journal of Economic Policy
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• v.29 no.3
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• pp.75-109
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• 2007

This paper empirically investigates the effects of import tariff on within-plant productivity growth in Korean manufacturing, using the detailed plant-level longitudinal data of the Korea Census of Manufacturers for the period of 1993-2003. Our main findings are as follows: First, the productivity changes of Korean manufacturing for the period under analysis were mostly induced by within-plant productivity gains, rather than within-industry and/or between-industry resource reallocations. Second, after controlling for firm-specific heterogeneity, the estimation results indicate that lowering tariff-barriers has a positive impact on within-plant TFP growth. We interpret the results in a way that trade liberalization through the removal of tariff and non-tariff barriers heightens the competitive pressure, which in turn creates incentives to reduce production and managerial inefficiency and to invest more on innovative activities. Third, we also find that plant productivity growth from reducing tariff barriers is particularly conspicuous within a year after tariff changes, which implies that plants are quickly adjusting to heightened import competition. On the other hand, our results show that the trade effect on employment creation proceeds relatively slow.

• Korean Journal of Labor Studies
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• v.24 no.1
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• pp.261-295
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• 2018

This study draws on data from the 1st (2005) to 6th (2015) waves of the Workplace Panel Survey regarding workplaces with labor representatives, i.e., a trade union or labor-management council, and analyzes these using a fixed effects panel data model to examine the relationship between the level of worker participation and the economic performance of workplaces. Analysis results indicate that higher levels of worker participation in an earlier time period are associated with higher per-worker value added (productivity) and per-worker labor costs (wages) at the current time period, but only up to a certain level beyond which the effect is found to decrease, thus forming an inverted-U shape pattern. Considered from a broad framework, these results are in line with the theoretical predictions by Freeman and Lazear (1995), who had established the logic behind the dynamics of the participation of labor representatives in management activities. In view of the fact that the current average level of worker participation in Korea is very low, the empirical analysis results of this study presents the policy implication that raising the level of workplace participation somewhat beyond current levels would yield improvements in economic performance in terms of the shared rent between labor and management - i.e., productivity (per-worker value added).

• Journal of the Korean Regional Science Association
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• v.38 no.1
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• pp.3-20
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• 2022

The purpose of this study is to exploratory analyze the transition pattern of establishments and workers in new growth industries in the metropolitan area from 2010 to 2019 and to identify regional factors affecting the inflow and outflow of new growth industry start-ups. As for the analysis, the original data of the Census on Establishments were used, and spatial data at the sigungu level were constructed based on the inflow and outflow data of the number of new growth industry businesses and workers. For the analysis, the degree centrality of connection to outflow inflow by region was calculated, and an empirical analysis was conducted on regional-level factors affecting the inflow and outflow of new growth industries by applying a negative binomial regression model. According to the results, the new growth industry manufacturing sector was actively relocated in southern Gyeonggi Province, and the new growth industry service sector in Gangnam and Guro-Geumcheon-gu, and the impact of regional-level factors on the inflow and outflow of new growth industry start-ups varies depending on the industry. This study presented implications for regional industrial policies to improve the competitiveness of the local economy by attracting new industries by identifying spatial transition patterns for new growth industries and conducting empirical analysis to identify influencing factors.

• Spatial Information Research
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• v.18 no.3
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• pp.41-52
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• 2010

This paper analyzed the interregional flow changes of software (SW) industries using a GIS Flow Map. Employment data for SW enterprise headquarters from 1999 until 2008 were constructed according to the Origin-Destination Matrix, and were mapped and analyzed using the Flow Mapper and ArcGIS Flow Data Model. From the result we can identify the decentralization of interregional flow in SW industries and recognize the possibilities of the larger SW enterprises' employment, the higher locational footlooseness. The GIS Flow Map was identified as useful tool for researching growth, decline and spatial movement of industrial clusters that experience business relocation. This method can be applied to understand and visualize urban spatial changes.