• Title/Summary/Keyword: Wage Decomposition

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The Long-term Trend and Decomposition of Gender Wage Gap (성별 임금격차의 장기 추세와 요인분해분석)

  • Jang, Kwangnam
    • Journal of Labour Economics
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    • v.43 no.2
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    • pp.75-107
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    • 2020
  • Using the data from 1980 to 2017, I show the long-term trends in the gender wage gap in Korea and analyze factors using decomposition method. It tended to decline until the 1990s, but gradually slowed after the 2000s. Gelbach(2016)'s decomposition method is used as an alternative rather than Blinder-Oaxaca decomposition. The results show that the proportion of explanation of traditional factors, such as age, education, firm size, industry and occupation, are continuously decreasing in explaining the gender wage gap. Expecially, the proportion of explanation of age and that of education have decreased, and that of industry tended to decrease in the 1990s but to increase after the 2000s.

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Glass ceiling in arts and culture professionals: Between J and R industries (문화예술분야 전문인력에 대한 유리천장효과 분석: J산업과 R산업 중심으로)

  • Chan, Jong-Sub;Heo, Shik
    • Review of Culture and Economy
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    • v.21 no.2
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    • pp.3-28
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    • 2018
  • This study focuses on analyzing the glass ceiling effect in arts and culture professionals through the quintile decomposition applied to the RIF unconditional quantile regression and Oaxaca-Blinder decomposition technique. From the industrial viewpoint, we divide arts and culture professionals into cultural contents professionals(large category J industry) and arts professionals(large category R industry). For our analysis, we employ the pooling data of 'Wage Structure Survey' from 2009 to 2016. Our results are summarized as follows. First, as OLS wage decomposition showed that the gender wage gap among the arts professionals was lower than cultural contents professionals, but the discrimination portion of total gender wage gap was larger. Second, from quintile regression decompositions, the glass ceiling effects of two types of professionals showed different results. Cultural contents sector was observed with the "steady glass ceiling effect" as the portion of the discrimination was continuously increased, while the arts sector was observed with the "limited glass ceiling effect" as the discrimination had drastically increased in the 80s and 90s.

A Study of Factor Decomposition of Wage Ineqaulity of Korea, 2006-2015 (임금 불평등 변화의 요인분해: 2006-2015년)

  • Jeong, Jun-Ho;Cheon, Byung-You;Chang, Jiyeun
    • Korean Journal of Labor Studies
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    • v.23 no.2
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    • pp.47-77
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    • 2017
  • This paper analyzes the changes in wage inequality and its contributing factors since the mid-2000s. Although trends vary by data and wage indices, the Gini coefficient of the total wage of all workers shows an increasing trend due to the part-time increase of less than 35 hours per week, while the wage Gini coefficient of hourly wages and the total wage Gini coefficient of full-time workers showed a declining trend. Part-time increases have increased inequality based on total wages, but part-time hourly wage increases can be considered to have reduced hourly wage inequality. Therefore, as a result of decomposing the factor of Gini coefficient reduction only for full-time workers, factors that contributed absolutely to inequality reduction were variables such as job tenure, career, and occupation, and employment type variable has little effects, and the establishment size variable deepens inequality. The variables such as industry, age, and education did not contribute significantly to the inequality change. This is attributed to the decline in wage premiums for job tenure and management and professional jobs and the increase in wage premiums for large-scale businesses.

Inter-Regional Wage Gap and Human Capital in Korea - An Unconditional Quantile Regression Decomposition Approach - (수도권과 비수도권의 임금격차와 인적자본 - 무조건 분위회귀 분해법의 적용 -)

  • Kim, Minyoung;Lim, Up
    • Journal of the Korean Regional Science Association
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    • v.33 no.2
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    • pp.3-23
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    • 2017
  • This study aims to understand how human capital is related to the inter-regional wage gap between the capital region and the non-capital region in Korea. We focus more specifically on whether the inter-regional wage gap is due to high levels of human capital in the capital region or due to high returns to human capital in the capital region. The decomposition method based on the unconditional quantile regression was used to examine how the relationship between human capital and the inter-regional wage gap varies along the wage distribution. When first estimating earnings functions from the two regions to apply this decomposition method, we included not only conventional indicators of human capital, such as education and on-the-job training, but also occupational skills including cognitive-interactive skills, technical skills, and physical skills. As a result, other things being equal, a large part of the inter-regional wage gap was explained by the human capital variables. Although the composition effect of the human capital variables existed in all the wage quantiles, the more important factor was the wage structure effect of the human capital variables. In addition, among the various human capital variables, the wage structure effect of years of education was a key factor in explaining the inter-regional wage gap. This study is meaningful in that it shows that the relationship between human capital and the inter-regional wage gap may vary depending on the wage quantiles.

Decomposition of Wage Differentials for Women with Disabilities in the Seoul Local Labor Market of Korea (서울 지역노동시장권 여성장애인 임금근로자의 이중차별적 임금격차 분석)

  • Lee, Young Kyeong;Lim, Up
    • Journal of the Korean Regional Science Association
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    • v.32 no.2
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    • pp.45-59
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    • 2016
  • The purpose of this study is to analyze the static and dynamic change of wage differentials of women with disabilities in the Seoul local labor market. This study attempts to explain the double discrimination mechanism for disabled women and empirically gender discrimination and disability discrimination for them by using Oaxaca-Blinder decomposition analysis. In addition, using Juhn-Murphy-Pierce decomposition analysis. we analyze the wage differentials caused by the changed characteristics of disabled women and structures of discrimination at the Seoul local labor market. Data from the Panel Survey of Employment for the Disabled and Korean Labor and Income Panel Study for two years (2008, 2012) are used. According to the result, wage differentials of disabled women caused by disability discrimination is approximately 55% of total wage discrimination, whereas 45% is caused by gender discrimination during the period. Both observed and unobserved components move in the same direction to narrow wage differentials due to the disability discrimination and gender discrimination. Also the endowments in the Seoul local labor market about the changes of observed and unobserved components contribute more to narrow gender wage differentials, while these endowments widen disability wage differentials.

Wage Gap and Determinants of Large and Small Enterprises (대기업과 중소기업 임금격차 및 결정요인)

  • Moo, Young-man
    • Journal of Labour Economics
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    • v.42 no.1
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    • pp.43-72
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    • 2019
  • As a result of decomposing the wage gap between large enterprises and SMEs using Oaxaca's wage gap decomposition method, the total wage gap of supply side factors was 44.2%, and the service years and educational background were the biggest influences. and As a result of decomposing the wage gap by firm size based on demand side factors such as business performance, total wage gap was 44.9%, and the influence on wage gap was in the order of labor productivity, union and outsourcing ratio. The results of this analysis suggest that it is necessary to consider the demand side factors such as business performance and capital structure of supply side companies such as differences in human capital in order to solve wage gap by firm size.

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The Relationship between Gender Wage Gap and Occupational Segregation (여성 근로자 분포와 직무에 따른 직종별 남녀 임금격차 분석)

  • Kang, Jooyeon;Kim, Giseung
    • Journal of Labour Economics
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    • v.37 no.4
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    • pp.113-141
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    • 2014
  • This paper examines the occupational gender wage gap in the Korea labor market. This paper classifies occupations into three(the blue-collar profession, white-collar profession and female-dominated profession) according to job characteristics and female worker's ratio. To analyze occupational gender wage gap, this paper uses Mincer's wage equation(1974) and Oaxaca model(1973). The results are listed below. First, the gender wage gap is growing in all occupations. Second, the cause of increasing gender wage gap varies in different occupations.

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Outdoor Workers and Compensating Wage Differentials: A Comparison across Regions and Wage Levels (실외노동과 보상적 임금격차: 지역별·분위별 추이)

  • Jeong, Sangyun;Song, Changhyun;Kim, Yeonwoo;Lim, Up
    • Journal of the Korean Regional Science Association
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    • v.38 no.2
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    • pp.3-20
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    • 2022
  • The purpose of this study is to explore the heterogeneity of compensating wage differentials for outdoor workers, under the threat of climate change and heatwave, by region and by wage quantile. This study conducted Oaxaca-Blinder decomposition, multiple regression analysis by region, and unconditional quantile regression analysis using the Korean Working Conditions Survey, which provides individual-level information on the working environment and worker's characteristics. The implications derived from the results of the study are as follows: For most variables, the endowment effect and the price effect were greater for indoor workers, while experience and gender played a role in narrowing the wage gap; The compensating wage differentials for outdoor workers were confirmed to be 2.4% nationwide, depending on the region however, the compensating wage differentials varied from 5 times of national average to nothing statistically significant; The higher the wage quantile, the greater the compensating wage differentials for outdoor workers, and statistically significant monetary compensation was not identified for some low-level outdoor workers. This study is meaningful as an early study that revealed the heterogeneity of compensating wage differentials for outdoor workers and suggested further research on the topic.

University Hierarchy and Labor Market Outcome - Wage Differentials between Provincial and Seoul Metropolitan Area University Graduates - (대학서열과 노동시장 성과 - 지방대생 임금차별을 중심으로 -)

  • Oh, Hoyoung
    • Journal of Labour Economics
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    • v.30 no.2
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    • pp.87-118
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    • 2007
  • Using KRIVET's Graduates Economic Activities Survey for 2005, this article examines the relationship between university ranking and labor market outcome, with a focus on wage differentials existing between provincial and Seoul metropolitan area university graduates. According to the analysis results, the average monthly wage for provincial university graduates was 1,747.7 thousand Korean won, which is 11.5% lower than that for graduates of universities in the Seoul metropolitan area. School effects on individual wage were estimated to about 12.2% after applying Hierarchical Linear Model technique, which means that university explains only an insignificant part of the total variance in wage among graduates. After controlling for the selection bias, the ability difference between the two areas, by applying the Heckman type 2SLS wage function and Neumark wage differential decomposition technique, the wage gap resulting from the segregation was not identified. This implies that, to a significant extent, the wage gap between provincial and Seoul metropolitan university graduates is attributed to the difference in productivity among individual graduates, rather than to the wage segregation. Also, the estimated wage function by applying Quantile Regression technique indicates that there does not exist any significant wage segregation difference by wage quantile.

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The Gender Gap of Wages for Social Workers : An Analysis for Workers at Social Welfare Institutions in Daegu Metropolitan Area (사회복지종사자의 성별 임금격차와 그 요인 : 대구광역시 사회복지기관을 중심으로)

  • Kim, Hwanjoon
    • Korean Journal of Social Welfare Studies
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    • v.47 no.3
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    • pp.139-159
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    • 2016
  • This study aims to investigate the wage gap between male and female workers at social welfare institutions and to determine its factors. For this purpose, a Blinder-Oaxaca decomposition and regression models are applied to analyze wage survey data. The results are as follows. Firstly, the gender wage gap of social workers is a bit smaller, compared to the average of wage earners. Secondly, about two-thirds of wage gap is due to differences in productivity(endowment) factors; the other part is due to discrimination. Thirdly, the most important cause of gender wage gap is career disruptions of female workers largely due to marriage and birth. Fourthly, other causes of gender wage gap include differences in education, in job grade, in employment status, and in the characteristics of institutions. Finally, among the discriminating factors worsening gender wage gap, a key factor is a gender discrimination in the compensation for age.