• Title/Summary/Keyword: wage changes

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Factors for the Decline of the Self-employed in Korea: A Search and Matching Model Approach

  • KIM, JIWOON
    • KDI Journal of Economic Policy
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    • v.44 no.2
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    • pp.45-71
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    • 2022
  • This paper studies potentially relevant factors affecting changes in the number of self-employed in Korea during the period of 1986-2018. The number of self-employed had increased steadily until 2002 but started to decrease around that time and had continued to decline. The increasing trend in the number of self-employed during 1986-2001 is mostly explained by demographic changes, whereas the declining trend during 2002-2018 cannot be explained by demographic factors. In this study, I consider four institutional factors that potentially affect the decrease in the number of self-employed after 2002: i) a decrease in the job-separation rate of wage workers, ii) an increase in the income tax rate applied to the self-employed, iii) an increase in minimum wages, iv) an expansion of unemployment insurance benefits. Using a search and matching model with the self-employed, I quantify the effects of these four factors on the decrease in the number of self-employed during 2002-2018. Quantitative results show that the impact of the increase in the minimum wage is relatively large, whereas the effects of the other three factors are limited. The increase in the minimum wage accounts for approximately 17.5% (0.169 million) of the decrease in the number of self-employed during 2002-2018 (0.964 million).

Task-Biased Technological Change, Occupational Structural Change, and Wage Premium in Local Labor Market Areas, Korea (업무편향적 기술변화에 따른 지역노동시장에서의 일자리 구조 변화와 임금 프리미엄 영향요인)

  • Changhyun Song;Up Lim
    • Journal of the Korean Regional Science Association
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    • v.39 no.4
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    • pp.33-51
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    • 2023
  • This study aims to investigate the changes in the employment structure of occupational groups by job characteristics and analyze the factors influencing wage premiums in local labor markets from 2010 to 2020. This study's analysis involves three primary steps. First, the occupational characteristics data from the Korea Network for Occupations and Workers are subjected to an exploratory factor analysis, and then a non-routine task intensity index is calculated by each occupations. Then, we conduct an exploratory analysis of changes in the distribution of employment by occupation from 2010 to 2020 by combining data from the Population Census with data from the Korean Labor and Income Panel Study to construct individual-level and regional-level data. Thirdly, we employ a hierarchical linear model to examine the individual-level and regional-level factors influencing wage premiums. Since 2010, the proportion of employment in occupations requiring non-routine task has continued to rise and now dominates the metropolitan labor market. Moreover, agglomeration effects resulting from urbanization produce a substantial wage premium for wage workers in occupations requiring non-routine tasks. This study seeks to provide policy implications to mitigate inequality and polarization in local labor markets by empirically analyzing the transition of occupational structure and wage inequality in relation to the local labor market context.

The Employment and Structural Changes around the 1997 Economic Crisis (1997년 경제위기를 전후한 인력 및 임금구조의 변화)

  • Park, Ki Seong;Kim, Yong-Min
    • Journal of Labour Economics
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    • v.25 no.3
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    • pp.35-57
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    • 2002
  • This paper investigates the employment and wage structural changes that have occurred around the economic crisis in 1997. We propose a theoretical model for external effects of human capital within firms and provide their estimation. When the employment and wage structural changes are considered simultaneously, labor demand decreases seem to more than offset labor supply changes during the period. While educational human capital, human capital accumulated with firm-tenure, human capital of married workers and of white-collar workers are considered to have positive external effects, human capital of relatively-old workers and managerial workers are considered to have negative external effects. We suggest that while employment restructuring with regard to age, tenure, and education and managerial workers during the period have improved the efficiency of firms, those with regard to married and white-collar workers have not.

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The Influences of Changes in Macro-Environments on Hotel Sales: Cases of Deluxe Hotels in Gyeongju City (거시환경변화가 호텔매출액에 미치는 영향: 경주지역 특급호텔을 중심으로)

  • Son, Eun-Ho;Park, Duk-Byeong
    • The Korean Journal of Community Living Science
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    • v.19 no.4
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    • pp.697-706
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    • 2008
  • Generally, tourism environments are classified as macro or micro environments. Hotel revenues are influenced directly and indirectly by macro and micro environments. This study aims to examine the determinants of the change in macro-environments on hotel revenue. The explanatory variables in this research were wage, exchange rates (ER), consumer price index (CPI) and seasonality. The results of this study were as follows; The CPI and ER significantly affected the hotel food and beverage sales. The seasonality (summer and autumn) and wage significantly affected the hotel room sales. Wage and seasonality (summer and autumn) also significantly affected the total sale on the hotels.

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Wage Determination Process and Income Disparity in Korean Metropolitan Cities (우리나라 광역대도시 지역노동시장의 임금결정과정과 소득격차)

  • 이원호
    • Journal of the Economic Geographical Society of Korea
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    • v.5 no.2
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    • pp.187-207
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    • 2002
  • This study investigates the wage determination process of regional labor markets in order to understand the regional dimension of labor market processes in Korean metropolitan cities. Since the financial crisis in late 1997, the interplay between labor market restructuring such as unemployment and skill polarization and income disparity has been shaped by the labor market process in the metropolitan cities. This is also closely related to the fact that both industrial restructuring and expanding information technologies in the metropolitan region have reshaped the labor demand structure and finally resulted in structural unemployment due to skill mismatch and spatial mismatch and wage inequality across different occupations. In addition, since wage determination process clearly has a regional dimension, wage determination and its influence on income profile in a certain regional labor market need to be understood by investigating its labor market characteristics including labor supply and demand structure, industrial changes, changing unemployment, etc. This is why labor market policy as a regional policy needs to be redefined and it can be much enhanced by geographical investigation on regional labor market.

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Comparison of Wage Treatment, Employment Environment, and Job Stability before and after Conversion to Indefinite Contract Status for School Foodservice Employees in Gangwon Province (강원도 학교급식 조리종사원의 무기계약직 전환 정책에 따른 임금처우, 고용환경, 직무안정성 비교분석)

  • An, Yong-Sun;Choi, Hang-Sok;Lee, Hae-Young
    • 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.

Influence that Wage Satisfaction of the private Security Guards has on Devotion Organization (민간경비원의 임금만족이 조직몰입에 미치는 영향)

  • Kim, Chan-Sun;Kim, Sang-Jin
    • Korean Security Journal
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    • no.12
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    • pp.89-116
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    • 2006
  • As the society changes, the Private Security has developed highly in a short time. However, it has brought about various problems. The best urgent problem of those problems is the wage problem. This study is examining into the difference with the wage satisfaction and devotion to organization, and analyzing influence that wage satisfaction has on devotion to organization. According to this research, the first, women appeared higher numerical value than men in satisfaction with a wage level, wage disparity, wage system and the welfare system and the highest age group is over 26 year-old. While the college graduates appeared high satisfaction with a wage level and wage disparity, the university graduates is high satisfaction with wage system and the welfare. This shows that as the scholarship is high, they think they must be getting wages higher and higher as their work result or produce. The second, in devotion to his(her) organization, the men is higher than the women. The third, the men show the high emotional devotion because the men devote to his work on his own initiative while the women show the high continuos service devotion because they are passively. The fourth, over the 26-year old group appeared high level in devotion to his(her) organization, the university graduate group appeared high level both the emotional devotion and the continuous service devotion. The long-term employed person showed the satisfaction with job position, pay grade, and career and also appeared high in devotion to his(her) organization. The fifth, as the scholarship is low, they were concerned about a wage level and wage disparity but, as the scholarship is high, they were concerned about the wage system and the welfare. The wage satisfaction has influence on the scholarship, job position and career therefore, the long-term employed persons showed high wage satisfaction and devotion to his(her) organization. In conclusion, for the development of Private Security and high devotion to organization, the wage level of private security guards must be systematize and the quality of the welfare must be improved. And the many factors about the wage and welfare must be studied and analyzed to occupy as one of the skill lists through the educational-industrial collaboration.

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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.