• Journal of Labour Economics
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• v.31 no.3
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• pp.47-74
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• 2008

Following two pioneering works, Medoff and Abraham(QJE 1980; JHR 1981) and Flabbi and Ichino(LE 2001) which use performance rating of personnel data as individual worker's productivity, this study replicates their analysis using a Korean large firm's personnel data(2000, male white collar workers). According to their methods through Mincerian earnings function, and multinomial logit model that links the distribution of wages and performance ratings, we find that seniority wages appeare continuously even if individual worker's productivity is controlled. Therefore we conclude that incentive or deferred compensation theory is more suitable than human capital theory.

• Korean Journal of Social Welfare Studies
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• v.42 no.4
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• pp.295-327
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• 2011

Although there are many studies on the retirement recently, very few studies have empirically addressed on mandatory retirement. In Korea, several scholars suggest that the seniority systems may be the main reason that employers have been reluctant to hire older workers. Therefore, the seniority system that Lazear(1979) proposed has significant implication on explaining mandatory retirement in Korea. Thus, this study aims to examine the seniority system that Lazear proposed can explain the retired employees' mandatory retirement. The empirical study is based on Korean Longitudinal Study of Ageing. wave I-II. The main result from this analysis is that interaction between wage and job tenure on mandatory retirement is statistically significant. For employees with high wage growth rates, the probability of mandatory retirement rate is higher as their job tenure is longer. On the other hand those employees with wage growth rates, that is lower although their job tenure is longer. This study supports the assertion of Lazear(1979).

• Journal of Engineering Education Research
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• v.18 no.1
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• pp.20-30
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• 2015

The recent increase of wages is considered to be the result of lawsuits on ordinary wage expansion and the reduction of working hours. This may enlarge the wage gap between enterprise and small business, and thus worsen the insufficient supply of workforce to small businesses. Therefore, it is necessary to provide strategies to control the increase of wages in order to resolve the difficulty in the industrial workforce supply and to enforce the industrial competitiveness.

• Korean Journal of Labor Studies
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• v.23 no.2
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• pp.1-45
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• 2017

This study aims at explaining organizational mechanisms of inequality that has been rising rapidly alongside the proliferation of irregular employment in the post-crisis Korean labor market. It argues that inequality is not sufficiently explained by individual gap in human capital or widespread marketization as such. Social categories into which each individual worker falls seems more important as a source of labor market inequality. Employment types that are composed of regular and irregular employment do not simply indicate the different economic meanings of employment contracts but have rather been institutionalized as a social category of status in the context of inequality over the past two decades. They are also often matched with other social categories such as gender that have created and reproduced greater labor market inequality. We pay attention to the organizational practice of dominant incumbents who make claims for advantages of return based on their exclusive accessibility to limited organizational resources and explain how that particular practice plays a role to increase relational inequality between those insiders who achieve advantageous returns and outsiders mostly irregular workers who are excluded from those resources because of the social categories that they belong to. In this study, we identify seniority based pay as the key organizational practice that justifies categorical differences within the workplace and examine how that particular practice contributes to organizational level segmentation and income ineqaulity.

• The Journal of the Korea Contents Association
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• v.18 no.9
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• pp.424-432
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• 2018

Job-wage is "a compensation system in which the basic pay is determined by the value of the task regardless of the nature of the person performing the task." The retirement age of workers in 2016 is trying to improve the wage system due to the enactment of the 60-year-old law. The performance salary system introduced in the previous administration try to switch the government of Moon Jae-in. In other words, the introduction of performance salary from the Seniority based Wage and the shift to the job payment system are taking place. This study analyzed case agencies in connection with the transition of job wage to public agencies. In other words, based on the awareness of the employees involved to the contents of the transition of the performance annual salary system to the job wage system analyze empirically. This study finds that there was strong negative perception of the performance-based pay system as a whole and the shift to a job wage system was also highly opposing. It was revealed that efforts to improve the problem are needed to improve performance annual salary system, to reverse the negative perception of job wage, to prepare fair evaluation criteria for performance and job duty and to persuade employees who oppose job change.