• Proceedings of the Safety Management and Science Conference
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• 2009.11a
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• pp.387-397
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• 2009

In these OECD countries, left-wingers Government focus on unemployment, but right-wingers Government cares more about inflation. It is that inflation and unemployment don't have differential effects across rich and poor and the happiness levels of these two groups are unaffected by identity of the Government in power. The poor people choose to left-wingers Government, but rich people prefer to right-wingers Government. I estimate whether above opinion is correct or not. Especially I check how my results change when I control for aggregate economy activity and government consumption, two variables that could be correlated with inflation and unemployment and affect each Government's happiness differentially. This paper, and I believe much of the happiness literature, can be understood as an application of experienced utility, a conception that emphasis the pleasures derived from private consumption and sentiment of it. In Granger Causality test, private consumption sentiment index related with industrial production interactively in Korea. The business cycles affect on private consumption sentiment index.

• 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.

• Journal of Labour Economics
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• v.31 no.1
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• pp.29-57
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• 2008

We construct a unique panel data by using Korean Economically Active Population Survey (KEAPS) from 2003 to 2007 to estimate the returns to different types of job mobility among men. By adopting Mincer(1986)'s method, we estimate the wage change to job mobility after controlling the sample selection bias. There are four different types of job mobility that are concerned in the study: (1) voluntary job-to-job changes without experiencing unemployment, (2) voluntary job changes with experiencing unemployment, (3) involuntary job changes due to layoffs, and (4) involuntary job changes due to discharges. Our findings indicate that Korean men who changed jobs without experiencing unemployment realized wage gains of 7% while those who changed jobs through unemployment period lost 10% of their wages. Among those who changed jobs involuntarily and went through unemployment, the workers who discharged from the previous jobs realized substantially greater wage loss.

• Journal of Labour Economics
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• v.38 no.2
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• pp.1-24
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• 2015

We estimate the natural rate of Unemployment in Korea, using job finding and separation rates. The estimation results suggest that both job finding and separation rates of Korea have increased after the 1997 Asian Financial Crisis. However, we don't find evidence of significant increase in the trend of the natural rate of unemployment. Overall our finding suggests that both job creation and destruction have increased.

• Journal of Labour Economics
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• v.23 no.2
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• pp.39-59
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• 2000

Given the constraint that the unemployment benefit is not allowed to vary freely over the unemployment duration, this paper examines the optimal UI benefit structure. In particular, identifying the conflicting effects of benefit amount and benefit duration upon incentive and insurance, this paper characterizes the optimal combination of UI benefit amount and duration. Based upon some important factors determining the optimal UI benefit structure that are derived from the model, a set of directions for UI reform in Korea have been proposed.

• KDI Journal of Economic Policy
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• v.46 no.3
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• pp.67-91
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• 2024

This paper aims to examine the economic impact of the implementation of an unemployment insurance (UI) program for entrepreneurs in South Korea. Despite facing labor market risks similar to paid employees, entrepreneurs are often not eligible for UI in many countries. South Korea, where entrepreneurs represent over 20% of the workforce, is considering a design of UI for entrepreneurs, with the goal of providing coverage to this group by 2025. This study examines how the addition of UI for entrepreneurs would impact the economy using a model of entrepreneurship based on a search and matching framework. The study's findings suggest that the implementation of UI for entrepreneurs would lead to increased business closures and reduced hiring, resulting in a slack labor market, which in turn would reduce social welfare overall. However, social welfare can be improved by subsidizing UI contributions paid by entrepreneurs, which provides the greatest improvement in social welfare compared to other social protection systems such as unemployment assistance.

• Journal of Labour Economics
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• v.26 no.1
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• pp.23-52
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• 2003

This study focus on unemployment and nonparticipation of youth. By dividing youth nonparticipants into 'house work and child care', 'studying and training', 'the others' categories, we estimate the potential wages with selectivity bias model and analyse the factors of choosing unemployment or nonparticipation with multinomial logit model. The differences between the potential market wage and the desired wage of the groups of 'studying and training', 'the others' in the nonparticipants are greater than those of the unemployment group. In the case of the man and lower age, and low schooling the differences of potential and desire wage are larger than woman and higher age, and high schooling. In the choice of unemployment and nonparticipation, man and higher age, and householder, and holder of qualification are not likely to opt nonparticipation. The experience of job lower the rate of probability to choose employment, but raise the rate of probability to choose unemployment and nonparticipation. These results mean that the quality of youth employment is very inferior.

• The Korean Journal of Applied Statistics
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• v.13 no.2
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• pp.275-286
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• 2000

After commencing the local self~governing system. it has been requested to make statistics about Si-Gun-Gu level. and the necessity of unemployment statistics in Si-GunGu area has also been proposed as the unemployment became a political issue and social problem due to an I:YIF situation Throughout this paper, therefore, we suggest two small area estimations that can produce the unemployment statistics of Si-Gun-Gu based on the Current Population Survey In addition, we estimate the unemployment number of Si-Gun-Gu in ChungBuk area from the real data of the Current Population Survey. Finally, It was also proved that the applicability of small area estimation was valid in comparison with efficiency of small area estimations.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.19 no.7
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• pp.423-442
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• 2018

This study observes the psychological changes of unemployed people according to their unemployment period. With this what psychological changes they face according to their unemployment period and what psychological characteristics they show, whether if psychological changes and job hunting activities are in relation, and whether if psychological changes affect job hunting activities. The study subjects received unemployment wage and were divided according to before employment, 1~3 months unemployed, and 4 months or more unemployed. An in-depth research of 8 people was conducted within the period of 2017.05~08. The psychological characteristics of people, in the period from when they first sense unemployment possibilities until three months of unemployment, are anger, anxiety, fear, which is a mixed characteristic that does not disappear but continues deepening. In study there was no significant difference in depression, anxiety, anger, social phobia, alcohol, religion factors, low self-esteem, and low self-efficacy in before employment, 1~3 months unemployed, and 4 months or more unemployed. However, the average levels of anger anxiety, depression, and social phobia were higher when the unemployment period was longer and the results of low self-esteem and low self-efficacy support further research.

• Korean Journal of Social Welfare
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• v.36
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• pp.229-257
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• 1998

In order to evaluate the effects of high unemployment rates on the income distribution and to find out mediative factors to these effect, the relationship between unemployment and income inequality in the industrialized countries and determinants of their relationship are analysized in this paper. Major findings from the analysis are these. First, changing pattern of unemployment rates are not similiar that of income inequality in the industrialized countries. This result suggests that relationships between unemployment and income inequality are dissimiliar within the industrialized countries. Second, results from analysis about relevant factors' effect on the relationship between unemployment and income inequality, the effects of economic factors such as economic growth rates and the scale of economy are not significant. But variables such as union density rates and scale of social welfare expenditure are found to have significant effects on the relationship between unemployment and income inequality. In fact, when the policy factors enters, the negative distributional effects of unemployment are lower by 50%. These results impliy that dissmilarities between the industrialized countries in the 1980s' changing patterns of income inequality are engendered from the union density rates and scale of social welfare expenditure. These findings in this paper suggest such a implication to the Korea; In order to achieve the more deserable society, policy orientations which give the priority to the economy restructuring rather than development of social welfare have to be reexamined and modified.