• Journal of Environmental Policy
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• v.7 no.1
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• pp.101-118
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• 2008

In this study, we estimate the labor demand function of environmental industry with environmental industry survey of Ministry of Environment. To do this, we apply the panel estimation technique. We follow the widely accepted estimation methods: panel generalized least square, panel generalized least square with heteroskedasticity/auto-correlation, random effect model and random effect model with auto-correlation. On the average, each industry is estimated at the elasticity of sales on labor demand from 0.193 to 0.259. It means that the increase of sales by 214billion won can create around $1,600{\sim}2,300$ jobs, and this is merely a direct effect. So when we consider the whole effect of labor demand increase including indirect derived job creation, the labor demand increase will be higher than this. So it is desirable for the government to support the development of environmental industry for sustainable development.

• Informatization Policy
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• v.17 no.4
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• pp.44-60
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• 2010

Under the continuing economic growth without increase in employment, issues regarding the impact of IT investment on demand for labor have been continuously raised. Under the circumstance, this study carried out an empirical analysis on the impact of IT investment on employment with a sample of 498 businesses whose domestic sales for the period of six years from 2003 to 2008 are KRW 100 billion or above. The result of the analysis found that IT investment increases employment in most of the industries except for some of the service sectors. In the manufacturing industry, more IT investment increased employment but decreased the flexibility in demand for labor; therefore, IT investment has a substitutional relationship with low-skilled labor and a complementary relationship with high-skilled labor. In the areas of electricity, gas and construction, employment increased as IT investment increased, with the greatest flexibility in demand for labor. In the service industry, increase in IT investment led to more employment and higher flexibility in producer services only. On the other hand, there was no meaningful relationship found between IT investment and employment in the areas of distribution services and social services.

• Journal of Korea Technology Innovation Society
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• v.14 no.4
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• pp.736-760
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• 2011

The importance of new renewable energy is emphasized not only new growth engine but also the key solution for the exhaustion problem of fossil energy and environment problem. For the steady growth of new renewable energy industry, securing related labor force is an essential factor. In this study, the status on labor force of new renewable energy industry was identified and forecasted the labor force demand of new renewable energy in 2015 by reflecting the industrial growth outlook on the new renewable energy. For the quantitative analysis methodology, the stock approach of Bureau of Labor Statistics (BLS) of the United States was applied. Also by performing survey on the experts, the opinions of experts on supply and demand of new renewable energy labor force or worker training programs have been gathered. As a result of study, it has been analyzed that nearly 20% annual growth rate will be shown as the labor force demand in the field of new renewable energy industry increases from 14,100 people in 2010 to 33,200 people in 2015. In the survey on experts, we could find that a plan for supplying labor force must be prepared promptly in order to accomplish new renewable energy supply objectives and industrial growth objectives by our country in the future as the supply of new renewable energy labor force is currently insufficient. Also, it has been analyzed that the effort for deciding the proper new renewable energy labor force training program standard will be necessary. This study result could be used as a material of labor force training plan for the steady growth of new renewable energy industry in the future.

• Journal of Technology Innovation
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• v.16 no.2
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• pp.201-223
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• 2008

This paper studies the supply and demand of Industrial Technology Labor-force(ITL) and analyzes the determinate of ITL shortage in Korean manufacturing. We classified the industry into four categories-high technology industries, medium-high technology industries, medium-low technology industries and low technology industries-based on its R&D intensity like OECD. For the empirical analyses we use a survey data collected from 5,703 enterprises. The key findings are as follows: Firstly, a large majority of ITL is engaged in more technology-intensive industries but the categories that are exposed to more serious labor-force shortage problem are medium-high technology industries and low technology industries. Secondly, in the terms of supply factor, the ITL shortage problems are mainly due to the avoidance of ITL jobs. And the demand point, the reason is that the most of ITL are not researchers but production managers. Thirdly, the cause of imbalance between supply and demand of ITL are different by the technological categories. For example, in the high technology industries, the supply factors, such as average wage and turnover rate played more important role in the imbalance. But in the low technology industries the demand factors, such as per capita sales and the ratio of ITL in all employees were relatively much more important. Based on the findings, we discovered some political meanings such as the necessity to plan various policies to resolve the shortage problem of ITL according to the technological categories, etc.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.4
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• pp.289-306
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• 2021

This paper aims to investigate how and to what extent FDI impacts the relative demand for skilled labor within firms in the case of developing countries. The analysis uses a sizeable micro-level dataset for Malaysian manufacturing industries using the System-GMM estimators to control the estimations' endogeneity problems. For this purpose, the study uses foreign equity share at the firm level to investigate foreign ownership effects at the firm level and the Horizontal FDI index by Smarzynska Javorcik (2004) to analyze FDI intra-industry linkages influence on the structure of labor demand for Malaysian domestic firms. Our findings indicate that foreign ownership increases the skilled demand within Malaysian manufacturing through the learning process, exclusively for small- and medium-sized firms (SMEs). Conversely for foreign-owned firms, changes in their skilled-labor share do not associate with changes in firm-level foreign equity share. We conclude that foreign ownership per se is not the major contributing factor for skill upgrading in Malaysian manufacturing firms. Furthermore, the competitive pressures caused by foreign firms' presence within the same industry - namely horizontal FDI - has a significant negative spillover effect on the level of skilled-labor share for domestic firms in the Malaysian manufacturing sector within periods of the understudies.

• Korea journal of population studies
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• v.9 no.1
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• pp.41-53
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• 1986

The purpose of this paper is two-fold. One is to investigate the determinants of the demand supply of labor, and another is to project long-term demand and supply of labor. The paper consists of three parts. In the first part, theoretical models and important hypotheses are discussed: for the case of a labor supply model, issues regarding discouraged worker model, permanent wage hypothesis, and relative wage hypothesis are examined and for the case of a demand model, issues regarding estimating an employment demand equation within the framework of an inverted short-run produc- tion function are inspected. Particularly, a theoretical justification for introducing a demographic cohort variable in a labor supply equation is also investigated. In the second part, empirical results of the estimated supply and demand equations are analyzed. Supply equations are specified differently between primary and secondary labor force. That is, for the case of primary labor force groups including males aged 25 and over, attempts are made to explain the variations in participation behavior within the framework of a neo-classical economics oriented permanent wage hypothesis. On the other hand, for the case of females and young male labor force, variations in participation rates are explained in terms of a relative wage hypothesis. In other words, the participation behavior of primary labor force is related to short-rum business fluctuations, while that of secondary labor force is associated with intermediate swings of business cycles and demographic changes in the age structure of population. Some major findings arc summarized as follows. (1) For the case of males aged 14~19 and 2O~24 groups and females aged 14∼19, the effect of schhool enrollment rate is dominant and thus it plays a key role in explaining the recent declining trend of participation rates of these groups. (2) Except for females aged 20∼24, a demographic cohort variable, which captures the impact of changes in the age structure on participation behavior, turns out to show positive and significant coefficients for secondary labor force groups. (3) A cyclical variable produce significant coefficients for prime-age males and females reflecting that as compared to other groups the labor supply behavior of these groups is more closely related to short-run cyclical variations (4) The wage variable, which represents a labor-leisure trade-off turns out to yield significant coefficients only for older age groups (6O and over) for both males and females. This result reveals that unlike the experiences of other higer-income nations, the participation decision of the labor force of our nation is not highly sensitive with respect to wage changes. (5)The estimated result of the employment demand equation displays that given that the level of GNP remains constant the ability of the economy to absord labor force has been declining;that is, the elasticity of GNP with respect to labor absorption decreasre over time. In the third part, the results of long-term projections (for the period of 1986 and 1995) for age-sex specific participation rates are discussed. The participation rate of total males is anticipated to increase slightly, which is contrary to the recent trend of declining participation rates of this group. For the groups aged 25 and below, the participation rates are forecast to decline although the magnitude of decrease is likely to shrink. On the other hand, the participation rate of prime- age males (25 to 59 years old) is predicted to increase slightly during 1985 and 1990. For the case of females, except for 20∼24 and 25∼34 age groups, the participation rates are projected to decrease: the participation rates of 25∼34 age group is likely to remain at its current level, while the participation rate of 20∼24 age group is expected to increase considerably in the future (specifi- cally, from 55% in 1985 to 61% in 1990 and to 69% in 1995). In conclusion, while the number of an excess supply of labor will increase in absolute magnitude, its size as a ratio of total labor force is not likely to increase. However, the age composition of labor force is predicted to change; that is, the proportion of prime-age male and female labor force is projected to increase.

• The Journal of Industrial Distribution & Business
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• v.9 no.3
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• pp.19-29
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• 2018

Purpose - This study empirically analyses the changes in unemployment rates to understand push factors of generating wage pressure and how it affects the aggregate demand in Korea and the United States. We use a structural macroeconomic model which is centered on the labor market and simultaneously explains the natural rate of unemployment and deviations. Research design, data and methodology - We attempt to empirically analyse the unemployment rates through two countries to analyse the economic effects of real wages and aggregate demand between 2000 and 2016. We introduce having estimated the whole model that the growth of unemployment into the part caused by each of these factors. Results - The results of this study show that in the long run, there is not only a natural level of employment but also a natural level of real demand are positively related. in the short run, demand can vary from bring about changes in employment by means of price or wage surprises. Conclusions - The pressure of demand in the labor market shows up strongly in both countries. The estimated labor-demand equation are consistent with this framework and generally have well defined real wage and demand effects.

• Korean System Dynamics Review
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• v.14 no.3
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• pp.105-134
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• 2013

Electrical construction business has public and professional characters. It may require appropriate interventions of the government because these business activities stand for not only profit-seeking competition, but also supplies of one of the key functions in our society. In other words, public benefit and private benefit are still in existence. The government therefore considers such an aspect of public importance of the business sector and needs to plan to adjust technical and engineering manpower of this market. This study focuses on the imbalance for labor supply and demand of technical engineer in electrical construction business. A system dynamics analysis is applied to understand and simulate the imbalance as a soft approach. It has the merit of causal loop diagram to alleviate the limitation of data lack problem. We find that excess demand is expected from 2010 to 2011, and excess supply is predicted from 2012 to 2021 about the manpower of technical engineer. It shows considerable disagreement between the supply and demand of human resource. So we suggest that it is strong necessity to construct statistics infrastructure for a manpower supply and demand plan.

• Journal of Labour Economics
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• v.31 no.1
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• pp.1-27
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• 2008

This study analyzes the causes of increase in temporary workers observed in the recent Korean labor market. In the analysis of sectors with relatively high ratio of temporary workers, the manufacturing sector tends to hire temporary workers in order to raise profitability, while wholesale & retails and construction sectors tend to employ temporary workers due to the fluctuation of product demand. Another possibility is that with the expansion of college graduates, it is likely that temporary jobs are used as a screening device to reduce the uncertainty of workers quality.

• Management & Information Systems Review
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• v.13
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• pp.141-162
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• 2003

This article discusses the issues of the estimated size and characteristics of irregular employment work force in Korea after IMF economic crisis in 1997. The issues of the estimated size of irregular employment work force originated from different concepts and its operationalizations among the labor economists, despite their utilization of the same labor force data, 'Economically Active Population Survey(EAPA)' collected from Korea National Statistical Office(KNSO). And the issues contribute toward the understandings of the irregular employment and the limits of the EAPA, despite its various usefulness. This article also describes the summary characteristics of irregular employment work force from both sides of labor supply and its demand. The major characteristics of irregular employment work force on the labor supply side appears in the concentration of social minorities, i.e. woman, the aged, lower educated and skilled populations. On the labor demand of irregular employment work force, the majority of it concentrated on the establishments under 10 employees, and probably the important incentives for irregular employment work force of the firms is labor cost efficiency. Finally, this article propose an alternative against the discrimination between the regular and irregular work force.