• Asia-Pacific Journal of Business
• /
• v.13 no.1
• /
• pp.277-288
• /
• 2022

Purpose - This study analyzed the determinants of local unemployment rate in Korea using panel data from 16 metropolitan cities and provinces from 2000 to 2018. Design/methodology/approach - We use a dynamic spatial panel model that considers characteristics of the regional unemployment rate such as the common factors effect, spatial dependence, and serial correlations. Findings - The local unemployment rate is affected by the past and present values of the national unemployment rate. And it is significantly affected by the past local unemployment rate and the past neighboring unemployment rate because spatial dependence and serial correlations are clearly present. In addition, when the industrial structure diversity and labor productivity were high, the regional unemployment rate decreased, and when the education level was high, the regional unemployment rate increased. Research implications or Originality - In order to reduce regional unemployment rate, it is necessary to plan and establish regional customized industrial structure policies under the stance of diversification rather than specializing the regional industrial structure and accompany improvement of the quality of education with the number of years of education. In addition, the redistribution of labor from low labor productivity sectors to high labor productivity sectors through technology development will help to reduce the local unemployment rate.

• Journal of the Korean association of regional geographers
• /
• v.7 no.2
• /
• pp.1-16
• /
• 2001

This paper is to examine the trends and structures of unemployment as well as its spatial patterns in Germany. Germany once achieved a well-developed employment system and full employment. Since 1970, however, unemployment has been one of the major issues in Germany. During the last three decades the unemployment rate has risen to unprecedented levels and stayed high. After the German unification, especially, labor market is characterized by the mass unemployment and the structural selective process of unemployment to be imposed on German workers. And regarding to the spatial patterns of massive unemployment, this study shows critical disparities between South and North Germany being overlapped with new disparities between East and West Germany. We can explain the regional differentiation of unemployment on the base of typical mismatch of labour market allocation. It is also shown that massive unemployment is related not only to policy shifts in labor market but also to structural transformation after the unification.

• Journal of the Economic Geographical Society of Korea
• /
• v.2 no.1_2
• /
• pp.83-102
• /
• 1999

The aim of this paper is to explore the trend and structural features of unemployment in Germany and to review the local and regional labour market policy against the unemployment. Unemployment has been one of the major issues in Germany since the oil shocks oi 1973-74 and 1978-80. The unemployment rate in western Germany was low at the time of reunification in 1990 and the next consecutive two years. Since then, the unemployment rate has sharply risen due to the restructuring of industries. In an effort to reduce the unemployment and to search (or new employment policies, the specific roles and advantages of communal units have been appreciated. The local and/or regional labour market policies are characterized as fellows: the corporative networking of all the agents including local administration, education institutes, regional labour bureau, firms and interest groups; the systematic integration of the various instruments which have been separately installed by different sectors; and the target-oriented adjustment of labour market approaches in the local circumstances.

• Journal of the Korean Regional Science Association
• /
• v.39 no.4
• /
• pp.3-17
• /
• 2023

This study aims to comprehensively assess the phenomenon of structural unemployment, with a specific emphasis on unemployment resulting from spatial mismatch, while also exploring potential solutions. Spatial mismatch unemployment presents a unique challenge distinct from unemployment stemming from demand deficient, thus requiring a more multifaceted approach beyond the efforts of individual businesses and national economic recovery policy. To underscore the importance of addressing spatial mismatch, this research seeks to quantify its contribution to overall unemployment. Additionally, we evaluate the effectiveness of local labor markets, a prominent mechanism for alleviating spatial mismatch, categorized by occupation, to assess their effectiveness for addressing this issue. Through this analysis, our study advocates for the development of comprehensive policies within the realm of job-related initiatives, including spatial alignment through inter-regional collaborations, in conjunction with region-specific policies and strategies for job creation.

• Journal of the Economic Geographical Society of Korea
• /
• v.5 no.2
• /
• pp.187-207
• /
• 2002

This study investigates the wage determination process of regional labor markets in order to understand the regional dimension of labor market processes in Korean metropolitan cities. Since the financial crisis in late 1997, the interplay between labor market restructuring such as unemployment and skill polarization and income disparity has been shaped by the labor market process in the metropolitan cities. This is also closely related to the fact that both industrial restructuring and expanding information technologies in the metropolitan region have reshaped the labor demand structure and finally resulted in structural unemployment due to skill mismatch and spatial mismatch and wage inequality across different occupations. In addition, since wage determination process clearly has a regional dimension, wage determination and its influence on income profile in a certain regional labor market need to be understood by investigating its labor market characteristics including labor supply and demand structure, industrial changes, changing unemployment, etc. This is why labor market policy as a regional policy needs to be redefined and it can be much enhanced by geographical investigation on regional labor market.

• Journal of the Economic Geographical Society of Korea
• /
• v.17 no.1
• /
• pp.129-146
• /
• 2014

This paper investigates how industrial diversity affects unemployment and employment instability from the perspective of the regional economy. Through this analysis, we examine how the industry-specific policy to promote some industry strategically in most of areas affects the stability of the regional economy. We measure Herfindahl indexes using the 1993-2010 data of 16 regions in Korea, and use panel regression model for empirical analysis. The main results from this empirical analysis are summarized as follows. First, we confirm that the industrial structure of most regions has been changed to the direction of specialization in 1990s and to the direction of diversification in 2000s through analyzing the changes in the values of Herfindahl indexes during the given period. Second, we find from the estimation results of panel regression model that the higher industrial diversity in most of regions is, the lower the unemployment rate is. However, a statistically significant relationship between industrial diversity and employment instability only partially confirmed. Third, there exist high unemployment rate and employment instability in most metropolitan areas, but it is hard to say that this relationship is highly statistically significant. From the results of the empirical analysis, it is likely that the industry-specific policies such as the regional strategic industry development policies unlike policy goals make the unemployment rate to rise and economic instability to increase. From the viewpoint of employment aspects, the strategies to increase industrial diversity would be desirable rather than those to specialize in the industrial structure.

• Journal of the Korean Data and Information Science Society
• /
• v.19 no.3
• /
• pp.867-875
• /
• 2008

At the period of knowledge and information in the twenty-first century, we need to produce exact data and draw up exact statistic for reasonable plans and policy which are necessary to regional growth, employment relationship, and regional welfare work. Also, we must form basis of regional statistic by producing statistic which affects on economic and social phenomenon like regonal income, unemployment rate, and business status as the basic data of these regional policy Therefore we hope much rationalization, scientification, and specialization of administrative affairs by developing the standard statistic which coincides a regional trait.

• Journal of the Korean Regional Science Association
• /
• v.31 no.2
• /
• pp.79-100
• /
• 2015

In spite of the various government policies to increase the jobs and to improve the employment environment, the unemployment rate has not reduced. The aims of this study are to analyze the structural mismatch(especially geographical mismatch) between job opening and job seeking, and thus to comprehend more deeply the factors affecting unemployment rates of economic regions in Korea. For the period of 2008~2013, the unemployment rates caused by geographical mismatches between job opening and job seeking have been increased steadily. For Chungcheong, Dongnam and Honam economic region, geographical mismatches of low-educated and low-skilled jobs showed relatively quite high, indicating that the job seeker have a strong tendency of preferring certain areas in looking for their jobs. It means that the job seeker can get a job only to move the other areas within an economic region. However, for Capital region, which is the largest job seekers in Korea, geographical mismatches in all types of jobs showed very quite low. So, it is very difficult for the job seeker to escape from unemployment when changing the other areas in looking for a job in Capital region. The results of this study gives an important implication that a nationwide uniform unemployment policy may not be effective to reduce unemployment conditions, and a differentiated unemployment policy should be established in considering the characteristics of geographic mismatches by the types of job in terms of the level of education and skill for each economic region.

• Journal of Service Research and Studies
• /
• v.5 no.1
• /
• pp.35-43
• /
• 2015

Regional comparative analysis for the variability of young man's employment indexes is important to unemployment or employment policy data of central and local government. Through the result of comparative analysis, central and local government can use differentiated policies for the regions and keep the efficiency for the application of detailed policy. In this study, based on economically active population survey data which consider economically active population rate, employment population rate and unemployment rate as typical employment indexes of young man, we analyzed the variability of these indexes by metropolitan cities and province regions using coefficient of variation. Also we proposed the largest index in variability of three employment indexes, and proposed the city and province region with the largest variability for each employment index.

• Journal of Labour Economics
• /
• v.26 no.1
• /
• pp.111-151
• /
• 2003

This study attempted to analize the hazard rate from unemployment and the influncing factors on the rate by regions. The data this study uses is Korea Labor Institute Panal Study(1998-2001) and the models are hazard analysis and Cox model. The results of hazard analysis are as follow. In capital and it's vicinity, the duration of unemployment is shorter than other regions even if the unemployment rate is higher. The labor market segmentation is confirmed between capital and it's vicinity region and other regions. Kyungsang region is higher in the unemployment hazard rate than Chunla or Chungchung regions. The duration of unemployment in capital and it's vicinity is 9.29 months comparing 11.86 months in the other region. The difference is statistically significant by the significance level 0.001. The duration of unemployment in Kyungsang is 6.96 months comparing 10.95 months in Chunla region. The Cox results which indicate the influncing factors on the hazard rate are as follow. In the regions like non-metro cities and non-capital and vicinitiy, the factors such as female, tenure, wage earners, manufacturing, wholesale and retale decrease the hazard rate. The results indicate that active labor market policies region by region are needed in Korea, especially for the marginal unemployed workes from non flourishing sectors.