• Journal of Labour Economics
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• v.32 no.2
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• pp.61-93
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• 2009

In this paper, we estimate the wage premium of English skills in the Korean labor market using Korean Labor and Income Panel Study(KLIPS) data. In a simple OLS model, we find that people with some English skills in terms of self evaluation or job requirement earn 30% more than those who do not have English skills. But in a small sample of relatively young people, higher English lest scores do not raise earnings. When we add SAT scores in the wage equation, there is no wage premium of English skills, and in the IV estimation, we find no "English premium". These results consistently imply that while there is a large wage premium of English skills in the Korean labor market, it reflects unobservable ability for the most part. Meanwhile some of the regression results favor human capital theory over screening theory as an explanation of the nature of the wage premium of English skills.

• Journal of Labour Economics
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• v.42 no.3
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• pp.39-74
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• 2019

In this paper, the wage equations of local labor markets for college graduates in Korea are estimated by Dahl(2002)'s methodology to correct for selection bias. The results suggest that the variations of coefficients in wage equations across the local labor markets are mostly remained after correcting for selection bias. The gender wage gap is hardly affected by selection bias. The variations of return to education and the major premium are reduced about 18% and 11% respectively. Meanwhile, the selection bias is negligible in the national capital region, which suggests that college graduates prefer the national capital region regardless of their gender, level of education, and major.

• KDI Journal of Economic Policy
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• v.44 no.2
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• pp.29-44
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• 2022

This study compares the wage equation in Korea to those in other countries, focusing on the wage returns to adult education and training (AET) participation. It is found that the wage compensation structure in Korea is associated mainly with job characteristics such as tenure and workplace size rather than with worker characteristics such as AET participation and cognitive abilities. It is also found that Korea's AET participation is skewed toward non-job-related AET, relative to the situations in other countries. These findings imply that the link between a worker's productivity and wage should be strengthened in order to incentivize workers to invest in AET relevant to the labor market.

• Journal of Labour Economics
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• v.37 no.4
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• pp.113-141
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• 2014

This paper examines the occupational gender wage gap in the Korea labor market. This paper classifies occupations into three(the blue-collar profession, white-collar profession and female-dominated profession) according to job characteristics and female worker's ratio. To analyze occupational gender wage gap, this paper uses Mincer's wage equation(1974) and Oaxaca model(1973). The results are listed below. First, the gender wage gap is growing in all occupations. Second, the cause of increasing gender wage gap varies in different occupations.

• Journal of the Chungcheong Mathematical Society
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• v.26 no.3
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• pp.571-576
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• 2013

In this paper, we solve the optimal investment problem when the investor gets labor income and may have a wage increase. We assume the investor has constant absolute risk aversion(CARA) utility and obtain closed form solutions.

• Journal of Labour Economics
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• v.30 no.2
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• pp.1-31
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• 2007

The purpose of this paper is to analyse wage differentials between non-regular and regular works. Data from EAPS(Economically Active Population Survey) 2005 show that the monthly wage level of non-regular worker is only 63% of regular worker and thus there exist 37% wage differentials. However, these wage differentials do not control for hours of work, the amount of human capital, job characteristics, and other individual characteristics affecting wages. If these variables are added to the hourly wage regression equation, the wage gap between non-regular and regular workers drastically decreases to 2.2%. Furthermore, decomposition of the wage differentials by Oaxaca method shows that productivity difference between non-regular and regular workers explains up to 91% of the wage gap. This implies that the magnitude of wage discrimination against non-regular workers is at most 0.2% of hourly wage of regular workers. To control for unobserved individual heterogeneities more accurately, we also construct panel data and estimate wage differentials. The results from the panel data approach show that there is no difference in the hourly wages between non-regular and regular workers. In some specifications, the wage rate of non-regular worker is rather higher than that of regular worker. These results are consistent with economic theory. Other things being equal, workers with unstable employment may require higher wages to compensate their unstability. Firms are willing to pay higher wages if they can get more flexibility from non-regular employment. Empirical results in this paper cast doubt on the view that there is wage discrimination against non-regular workers in the labor market. Public policies should be targeted for disadvantaged groups among non-regular workers, not for non-regular workers in general.

• The Journal of Industrial Distribution & Business
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• v.14 no.10
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• pp.35-43
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• 2023

Purpose: The purpose of this study is to analyze the structural relationship between the possibility of socioeconomic class elevation of wage earners, happiness and organizational commitment, and life satisfaction. Research design, data and methodology: Data from the 24th fiscal year (2021) of the Korea Labor Panel data were used for analysis. Only wage earners who measured job satisfaction and organizational engagement were analyzed, and a sample of 9,138 respondents was finally used, excluding missing values. Structural Equation Modeling was performed using AMOS 23.0, and Maximum Likelihood Estimation (MLE) was used as a model estimation method. Results: First, the hypothetical structural model set up for the study was found to be suitable. Second, the Possibility of Socioeconomic Class Elevation of wage earners, happiness, and organizational commitment were found to have a direct impact on life satisfaction. Third, the possibility of improving the socio-economic status of wage earners affects life satisfaction, and happiness and organizational commitment appear to have a partially mediating effect. Conclusions: This study is significant in that it has increased interest in organizational participation and life satisfaction, which were not covered in previous studies on the possibility of wage workers moving up the socioeconomic class.

• Journal of Labour Economics
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• v.25 no.1
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• pp.131-160
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• 2002

This article tried to find out the individual wage effect of training. This Article used 1998, 1999 KLIPS(Korea Labor and Income Panel Study) panel data. The size of the individual wage effect of training was twice of tenure's, and had significance. Training had a good effect on the job satisfaction and carrier development. To overcome self selection bias, this article regressed the first difference of wage equations, but we didn't get the significant results. Dividing sample into quitters and non-quitters in order to investigate the relation between training cost and benefit, we regressed separately the each first difference of wage equation. On quitters, the individual effect of training appeared significantly, but on non-quitters, it didn't. This results mean that employer does not raise wage rate according to upgraded skill originated in incumbent's training. And the results also mean that the upgraded skill of employee who quit pre-employer is recognized by new employer, and his wage rate rises in his new job.

• Journal of Labour Economics
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• v.36 no.2
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• pp.37-65
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• 2013

This study compares the return to seniority and experience among different groups of workers. Skilled workers in large company appear to enjoy the biggest seniority premium, while non-regular workers and small company workers hardly have any. Trade union did not have significant effect. Return to experience increased especially in large firms. Nonparametric model specification test shows that the biases for returns to seniority and experience of 30 years to be between -25~29%, and -42%~6%, respectively.

• 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.