• Journal of Digital Convergence
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• v.16 no.10
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• pp.145-153
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• 2018

Recently the Korean society has suffered severe conflicts over the rate of increase in the minimum wage, while academics have failed to provide appropriate standards through reliable research. Recent foreign studies using natural experimentation or meta-regression analysis show that the increase in minimum wage has little effect on employment. Domestic studies are not yet numerous in number, and they present different conclusions on employment effects depending on the data used, sample period, and research model. To properly assess the employment effects of the minimum wage, future studies should minimize measurement errors in minimum wage dataset, and appropriately consider the endogenous change of minimum wage, economic situation and trends of employment changes. It is also necessary to utilize natural experiment methods before and after the increase of the minimum wage.

• Journal of Labour Economics
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• v.29 no.2
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• pp.145-169
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• 2006

This study analyze the effect on wage, labor mobility by using Craft II Class certification out of National skill certification. In this article, we used the parametric and nonparametric method. In the former we used IV that the fraction of certification by occupation by firm scale to solve the selection problem. In the latter, it's used matching method and kernel regression. The paper shows that certification effect on wage has about 5.1~9.9%. The result of analysis between certification and labor mobility indicates better certification effects on long term tenure to the same firm than certification effects on wage from labor mobility. Also, we knew that the employee which have no certification relative is difficult to be established in the same workplace.

• 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.

• Journal of Labour Economics
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• v.33 no.1
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• pp.53-84
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• 2010

This paper investigates the wage losses of displaced workers, using data from the Korean Labor & Income Panel Study. Previous Korean studies were only to estimate the wage losses shortly after job displacement. However, if the wage losses persist, those results seem to under-estimate the effects of displacement. Our findings show that the wage reductions are quite persistent 4 years after displacement. And much of this persistence can be explained by the lost labor market experience (lost opportunities to accumulate generalized skills) and additional job losses in the years following an initial displacement.

• 한국노년학
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• v.36 no.3
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• pp.827-846
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• 2016

The presented study was based on the notions that 1)the age-separated perspective would not be functional for post modern society which characterized by a diversity of life styles and 2)effects of wage peak system have been investigated mainly through managemental efficiency with quantitative analysis. In those notions, this study aimed to investigate effects of wage peak system based on age integration perspective with a qualitative method. Deep case study were executed with four workers who fully understand regarding wage peak system. Results showed that three sub categories were drawn in the meaning focused on issues of wage peak system; uneasy attention on workers who applied for wage peak system; pro and con of wage peak system for aged workers; achieving age integrated environment through mutual understanding.

• Journal of Labour Economics
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• v.31 no.3
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• pp.75-105
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• 2008

This paper examines the changes over lime in union relative wage effects during the period of 1988 and 2007. The union wage premium was 3.4 percent in average during the last 20 years. It has fallen in the boom years up to the mid-1990s, but has rapidly risen since the Asian financial crisis of 1997. Time series evidence suggests that the union wage premium is counter-cyclical, which means that it responds to economic conditions with a reverse direction. There has been also a fast increase in the unadjusted wage gap relative to regression-adjusted wage gap during the last 10 years in particular, implying favorable changes in the selection of workers into unionized companies.

• KDI Journal of Economic Policy
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• v.40 no.3
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• pp.1-44
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• 2018

This paper studies the macroeconomic effects of an enhancement in unemployment benefits in Korea. In particular, I quantify the welfare effect of two specific policy chances which have been mainly discussed among policymakers in recent years: increasing wage replacement rates by 10%p and extending maximum benefit durations by one month. To this end, I build and calibrate an overlapping generation model which reflects the heterogeneity of the unemployed and the specificity of the unemployment insurance (UI) system in Korea. The quantitative analysis conducted here shows that extending maximum benefit durations by one month improves social welfare, whereas increasing wage replacement rates by 10%p deteriorates social welfare. Extending maximum benefit durations is applied to potentially all the UI recipients, including unemployed workers whose wage before job loss is relatively low and whose marginal utility is relatively high. However, increasing wage replacement rates is applied to only a small number of UI recipients whose wage before job loss is relatively high, while the increase in the UI premium is passed onto all of the employed. This study suggests that given the current UI system and economic environment in Korea, it is more desirable to extend maximum benefit durations rather than to increase wage replacement rates in terms of social welfare.

• 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.

• Journal of Labour Economics
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• v.34 no.2
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• pp.79-107
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• 2011

This study investigates the status of English scores in the Korean labor market. We provide an empirical explanation of how English scores affect labor performances in Korea. Specifically, we focus on the effects of TOEIC scores on college graduates' job opportunity and wage premium. Our empirical tests for TOEIC scores are implemented in three dimensions: (1) Screening effects (2) Signaling effects (3) Wage effects. The results are as follows. First, we find the positive correlation between TOEIC scores and job opportunities, which implies that TOEIC scores play an important role in employee selection process. Second, our tests give the same results when it comes to job seeker's use of TOEIC scores as signaling instrument. That is, high TOEIC scores have positive signaling effects in the labor market. However, there also exists disadvantage effect of low TOEIC scores, in that job applicants with TOEIC scores below certain level are even more disadvantageous than those with no TOEIC scores. Finally, wage premium of TOEIC scores are found, even when other variables (e.g. GPA) are controlled or we use the instrumental variable estimate.

• Health Policy and Management
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• v.30 no.1
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• pp.92-99
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• 2020

Background: The purpose of this study is to analyze the effect of the income support allowance policy for the care workers on wage level. Methods: The analysis data was constructed using database (DB) of long-term care institution, DB of long-term care personnel status, and DB of health insurance qualification and contribution possessed by National Health Insurance Services. We analyzed the wage status of care workers 2009 to 2016 through basic analysis. We used the difference-in-difference analysis method for the workers who worked in the same institution from 2012 to 2013, The effects of the income allowance policy on wage increase were analyzed. Results: As a result of the net effect of the income support allowance policy, the monthly average wage of the care worker increased by 25,676 won and the hourly wage increased by 478 won. As a result of the analysis, it can be confirmed that the income support allowance policy has achieved some of the goals of raising the wage level of the care workers, and the effect of raising wages for other occupations in the long-term care business can be confirmed. Conclusion: The low wage problem of long-term care workers such as care workers is not the only problem in Korea. In other countries, there are various wage support policies for employees. In particular, it is necessary to refer to the improvement in the treatment of care workers in Japan and wage pass-through in the United States. In addition to wages, there is a need to promote policies to provide employment motivation through efforts to improve their social status and improve their job status and career development for employees in long-term care facilities.