• Korean Journal of Labor Studies
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• v.19 no.1
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• pp.35-64
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• 2013

This paper explores whether or not a minimum wage increase can do much to alleviate working poor. For this purpose, I analyze transitions from working poor to working non-poor and to unemployment or non-economically active states, using KLIPS (Korea Labor and Income Panel Study). This study uses the multilevel multinomial logit model to control unobserved individual heterogenous characteristics. It finds that a minimum wage increase tends to cause a higher probability of transitions from working poor to working non-poor. It is also discovered that a minimum wage increase is not negatively related with the persistence of the working state. It is concluded that minimum wage increases are likely to be effective in improving the living standards of the 'working poor'.

• Journal of the Korean Dietetic Association
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• v.24 no.3
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• pp.261-274
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• 2018

The purpose of this study was to compare wage treatment and the employment environment of school foodservice employees before and after conversion to indefinite contract status since September 2012 when the Ordinance on the Appointment of Education Officials (indefinite contract) under the Gangwon Provincial Superintendent of Education was applied as well as to examine the effects of wage treatment and the employment environment on job stability. The questionnaire survey was conducted from March 31 to April 10, 2017 for school foodservice employees working at 97 schools in Gangwon province. A total of 477 questionnaires were distributed and 470 questionnaires were used for the analysis. Statistical analysis was conducted using SPSS Window Ver.18.0. The detailed results of this study were as follows. First, wage treatment (2.29 vs. 3.16), employment environment (3.45 vs. 4.22) and job stability (1.88 vs. 2.35) revealed significantly positive perceptions after conversion to indefinite contract status compared to before conversion. Second, after analyzing leading factors influencing job stability, it was revealed that wage treatment (before: ${\beta}{\hat{a}}=0.516$, P<0.05; after: ${\beta}{\hat{a}}=0.465$, P<0.05) had a positive (+) effect on job stability, whereas employment environment did not affect job stability. In conclusion, in the context that most school foodservice employees are contract employees, this study is significant in that the changes in the employment policies of the national government and education office were confirmed to have effects on school foodservice employees.

• The Journal of the Korea Contents Association
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• v.19 no.6
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• pp.387-401
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• 2019

The aim of this study is to investigate the effects of income inequality caused by capital and wage incomes under globalized economic system in Korea. Empirical evidences which are obtained by cointegration methodology reveal that the effects resulted from capital and wage incomes to income inequality are alternative between short-run and long-run. And, the wage income has stronger impact on income inequality than the capital income. This might be occured as a result of that inbound foreign capital seems not to contribute to economic activity in real sector. It also has to be mentioned that the income inequality is negatively influenced by international trade in the short run and in the long run as well. To this end, it would be concluded that well-organized distribution system for wage income should be established, accordingly. And, forward and backward linkages in exporting industry have to be re-evaluated in order to improve income inequality in Korea.

• Korean Journal of Social Welfare Studies
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• v.43 no.2
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• pp.345-366
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• 2012

This study analyze Family gaps(the wage gap between mothers and non-mothers) across the wages distribution in Korea using 2008 Korean Labor and Income Panel Study. Analysis models include Heckman's two stage estimation to control women's labor participation selection and Quantile regression method to examine the effects of children at different points of the wage distribution. The result indicates that first, comparing non-mothers, mothers with one child suffer statistically significant hourly wage losses at 25th, 50th, and 75th distribution, however not significant effects are found at lowest(10th) and highest(90th) distribution. Second, comparing non-mothers, mothers with two more children suffer statistically significant hourly wage losses at all distribution. Family gap differs across the wage distribution and highest family gaps are found at 25th distribution. With these results, the author suggests universal family policies to support mothers' labor participation and the reconciliation of work and family.

• Journal of Labour Economics
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• v.36 no.1
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• pp.63-91
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• 2013

This paper analysed the training effects on wage and employment security by the non-standard worker types by using Economically Active Population Additional Survey data. Through propensity score matching method, we found that the regular workers' training effect on wage was 4.2%, that was very higher than 2.7% of fixed-term workers. Logistic regression analysis showed that the training participation itself did not affect on the regular workers' regular position continuance, but training duration affected. Just in fixed-term workers among non-standard workers, both of training participation and training duration affected the transition from non-standard position to regular position. The result that both training effects on wage and on employment were positive just in the fixed-term workers might be interpreted owing to the clear employment contract relation between employer and employees.

• Korea journal of population studies
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• v.29 no.3
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• pp.29-50
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• 2006

This study examines the effects of pre-employment efforts of the youth on their transition to the labor market. Labor market performance is accessed by the transitory period, the employment at workplace with more than 300 employees, and the wage level. Based on the effects of employment efforts for the first transitory period, job experience during school and preparatory period for employment would raise the likelihood of employment, but the school credit, grade in English, and the frequency of interviews, on the contrary, failed to reduce the transitory period. Employment effect varied according to educational background. In case of college graduates, vocational education and job experience during school were statistically significant variables leading them to decent jobs. On the other hand, in case of university graduates, job experience and language skills were proven to be important factors. Lastly, for the wage effect, in case of college graduates, vocational training, job experience during school, and English ability were proven to increase the wage level. However, vocational training after graduation and job experience during school decreased the wage level, but grade in English and pre-employment efforts during school increased the possibility of getting a decent, highly paid job for university graduates.

• 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.

• KDI Journal of Economic Policy
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• v.31 no.1
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• pp.207-237
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• 2009

One of the main problems in Korea's public assistance program, the NBLS (National Basic Livelihood Security), is that the loophole of welfare system is continuously growing. Living wage program is the largest sub-program of the NBLS, and the most important determinant of amount of living wage for each beneficiary is the level of reported income. Therefore, accurate and effective income detection is essential in improving policy effects and furthermore reducing the leakage of wage expenditure as beneficiaries always have an incentive to underreport their income. Since most of them do not pay income tax, the welfare authority should exert an independent effort to effectively detect their income. Considering that living wage is a special kind of income tax of which marginal tax rate is -1, one can apply a classical theory of tax evasion to understand illegal or excessive receipt of living wage caused by income underreporting. Utilizing a classical theory given by Alingham and Sandmo (1972), this paper provides a theoretical analysis of the optimal income reporting of the beneficiary. Then an optimization problem is constructed from the government's viewpoint to derive optimal income detecting device (auditing). This paper proves that cut-off discriminated auditing outperforms random auditing and cut-off auditing which implies if the government assigns a positive audit probability to every reported income less than a certain level and the probability is inversely proportional to the level of reported income, it can minimize underreporting and then gradually reduce the leakage of wage expenditure.

• Korean Journal of Social Welfare Studies
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• v.48 no.3
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• pp.145-169
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• 2017

Female plays an important role in new welfare policies as emerging new social risks including care needs resulted from increasing female employment participation and changes in family structures. Whereas the effects of work and life reconciliation policies on female employment are well established, less is known for the role of production regime as an important institution on gender wage gap. This study examines the questions in what way and to what extent production regimes and work and family reconciliation policies influence gender wage gap in advanced capitalism countries using the Luxembourg Income Study (LIS). The coordinated market economies (CMEs), presented as higher firm-specific skills, are associated with lower income rank for female workers than male workers, hence larger degree of gender wage gap. Longer parental leave weeks and higher childcare expenditures are associated with less degree of gender wage gap. This research highlights the importance of production regimes in understanding gender wage gap and potential interaction between production regimes and work and life reconciliation policies on gender wage gap.

• Journal of Labour Economics
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• v.44 no.1
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• pp.1-30
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• 2021

The objective of our study is investigating the effects of the minimum wage on a producer price index (PPI) and selected restaurant menu prices. As an identification strategy, we exploit inter-industrial and inter-regional variations in the share of workers who are affected by the minimum wage. Estimation results show a significant relationship between the share of workers affected by the minimum wage and prices. Specifically, a PPI and selected restaurant menu prices tend to rise by 0.77~1.68% and 0.16~1.86%, respectively as the share of workers affected by the minimum wage increase by 1%p. These estimates imply that during the period of our analysis 0.82~3.01% and 4.45~47.04% of overall changes in a PPI and selected restaurant food prices are associated with the adjustment in the minimum wage.