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

• Journal of Digital Convergence
• /
• v.17 no.9
• /
• pp.135-145
• /
• 2019

Prolonged recession has caused the youth unemployment rate in Korea to remain at a high level of approximately 10% for years. Recently, the number of unemployed Koreans in their 30s and 40s has shown an upward trend. To expand the government's employment promotion and unemployment benefits from youth-centered policies to diverse age groups, including people in their 30s and 40s, prediction models for different age groups are required. Thus, we aimed to develop unemployment prediction models for specific age groups (30s and 40s) using available unemployment rates provided by Statistics Korea and Google search queries related to them. We first estimated multiple linear regressions (Model 1) using seasonal autoregressive integrated moving average approach with relevant unemployment rates. Then, we introduced Google search queries to obtain improved models (Model 2). For both groups, consequently, Model 2 additionally using web queries outperformed Model 1 during training and predictive periods. This result indicates that a web search query is still significant to improve the unemployment predictive models for Koreans. For practical application, this study needs to be furthered but will contribute to obtaining age-wise unemployment predictions.

• Korean Journal of Social Welfare Studies
• /
• v.41 no.3
• /
• pp.403-442
• /
• 2010

This study aims to configurate the contents of social policy strategies of European welfare states in the postindustrial society. The social policy strategy of the socialdemocratic regime consists of 'maintenance of statecentrism' and 'inclusion'. The contents of social policy strategy of the liberal regime are 'expansion of market forces' and 'increase of individual' self-responsibility'. The conservative regime adheres to the 'protection of male breadwinner; and 'income maintenance programs'. Due to these social policy strategies, the conservative regime has very high rate of unemployment. In the liberal regime, the high rate of poverty exists. In contrast, the socialdemocratic regime has low rates of unemployment and poverty and shows best social outcomes among the welfare regimes.

• 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.

• 한국사회정책
• /
• v.25 no.1
• /
• pp.345-375
• /
• 2018

This study examines labour market and unemployment protection policies as a configuration in 12 OECD countries in order to investigate how countries from different regime conform to or diverse from previous welfare state regime discussion, and to examine its relationship with poverty and inequality. In analyzing the combination of the unemployment insurance, the unemployment assistance, and active labour market policy, firstly, fuzzy scores of unemployment insurance was calculated by analyzing the strictness of eligibility, duration of benefit and the generosity of income replacement rate. For unemployment assistance, the ratio of public assistance expenditure to the GDP in each country and the ratio of unemployment benefit level to the average wage in each country have been considered. As for the active labour market policy, the total expenditure per GDP of this policy was converted into fuzzy points and analyzed. As a result, 5 types in 2005 and 6 types in 2010 were generated. Specifically, 'assistance type(iAp)', 'insurance type (Iap)', 'comprehensive safety net type (IAP)', 'weak safety net type(iap)' were analyzed. This paper suggested policy implication for South Korean case, which consistently had high score for weak safety net type(iap).

• The Journal of Asian Finance, Economics and Business
• /
• v.8 no.10
• /
• pp.229-238
• /
• 2021

The article applies the ECM - ARDL model to examine the relationship between economic indicators and the existence of the disease in the long run of 10 ASEAN countries from 2000 to 2019. There are two models: The first model investigates the impact of GDP per capita, net inflow FDI, unemployment rate, and inflation rate on the proportion of export to GDP of ASEAN countries, the second model is similar to the first one but adds one more variable to the independent variable list - 'the variable for disease'. The results prove the long-run effect of GDP per capita, FDI, unemployment and inflation rate on export of the selected countries, though individual country shows differences in the sign and magnitude of these impacts. Surprisingly, the number of people suffering from disease does not affect the export of all selected countries as expected. The results of the two models also indicate that the disequilibrium in the short run converges to the equilibrium in the long run with a high proportion, especially in the case of Cambodia and the Philippines, with the rate of 95.65% and 151.94%, respectively. The findings can be useful for policymakers in promulgating efficient policies to enhance the trading activities of the selected countries.

• Journal of the Korea Academia-Industrial cooperation Society
• /
• v.12 no.8
• /
• pp.3503-3509
• /
• 2011

Recently the problem of high unemployment rate of college graduate is one of the government's important issues to be solved. Therefore government has been proposed various policies and strategies to solve the problem and also universities are trying to put their best time and efforts to help students to find their decent jobs. In this study, we have compared the differences of new employee selection criteria between corporation's human resource managers and college students which could be one of the reasons of high unemployment rate. Our research shows that there are significant differences between two groups that are considered to be one of reasons of miss matched employment between companies and applicants. Therefore we have suggested how students, companies and universities can solve the problem of different perceptions on the selection criteria and tried to contribute to increase college students' employment.

• KDI Journal of Economic Policy
• /
• v.32 no.1
• /
• pp.131-169
• /
• 2010

I develop a matching model in which risk-averse workers face borrowing constraints and make a labor force participation decision as well as a job search decision. A sharp distinction between unemployment and out of the labor force is made: those who look for work for a certain period but find no job are classified as the unemployed and those who do not look for work are classified as those out of the labor force. In the model, the job search decision consists of two steps. First, each individual who is not working obtains information about employment opportunities. Second, each individual who decides to search has to take costly actions to find a job. Since individuals differ with respect to asset holdings, they have different reservation job-finding probabilities at which an individual is indifferent between searching and not searching. Individuals, who have large asset holdings and thereby are less likely to participate in the labor market, have high reservation job-finding probability, and they are less likely to search if they have less quality of information. In other words, if individuals with large asset holdings search for job, they must have very high quality of information and face very high actual job-finding probability. On the other hand, individuals with small asset holdings have low reservation job-finding probability and they are likely to search for less quality of information. They face very low actual job-finding probability and seem to remain unemployed for a long time. Therefore, differences in the quality of information explain heterogeneous job search decisions among individuals as well as higher job finding probability for those who reenter the labor market than for those who remain in the labor force. The effect of the extended maximum duration of unemployment insurance benefits on the aggregate labor market and the labor market flows is investigated. The benchmark benefit duration is set to three months. As maximum benefit duration is extended up to six months, the employment-population ratio decreases while the unemployment rate increases because individuals who are eligible for benefits have strong incentives to remain unemployed and decide to search even if they obtain less quality of information, which leads to low job-finding probability and then high unemployment rate. Then, the vacancy-unemployment ratio decreases and, in turn, the job-finding probability for both the unemployed and those out of the labor force decrease. Finally, the outflow from nonparticipation decreases with benefit duration because the equilibrium job-finding probability decreases. As the job-finding probability decreases, those who are out of the labor force are less likely to search for the same quality of information. I also consider the matching model with two states of employment and unemployment. Compared to the results of the two-state model, the simulated effects of changes in benefit duration on the aggregate labor market and the labor market flows are quite large and significant.

• Korean Journal of Social Welfare Studies
• /
• v.43 no.2
• /
• pp.141-178
• /
• 2012

Although the rate of self-employment is high in Korean labor market and the rate gap between age groups is high, few studies have addressed on the effects of push factors on transition into self-employment across age groups. The goal of this research is to determine if push factors exert different effects on the self-employment decisions across age groups. There is interest in testing push hypothesis and pull hypothesis. The Korean Labor and Income Panel Study wave 6~11 is used to test this study's hypothesis. The main contribution of the paper is that in case of high unemployment, the probability of transition into self-employment increases. It is consistent with the push hypothesis. Many people are forced to become self-employed person due to the high rate of unemployment and limited occupational choice rather than the role of entrepreneurship. By age subgroup, the transition into self-employment of the ages of 30 and 49 is high. In addition, people at 40-49 years of age are more likely to become self-employed as a response of inadequate job opportunities. It provides the evidence that the self-employment is not a matter of special age group in that people in the 30 to 49 year old age group whose economic activities are vigorous move into marginalized labor market. Furthermore, it seems to be threatened the employment's stability of the prime age in that even people who are age 40-49 years of age are pushed into self-employment because of the recession.

• 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.