• Journal of the Economic Geographical Society of Korea
• /
• v.27 no.2
• /
• pp.120-132
• /
• 2024

In this paper, we examine how the market potential affects wages in the regions of Korea. Following Fallah et al.(2011), we construct a panel data set spanning from 2013 to 2020. After removing the characteristics that do not vary by region, changes in average wages were analyzed using a fixed effects model. Controlling for such region-specific characteristics as human capital, industrial structure, and population, the impact of market potential on wages was analyzed by first examining the entire group of cities in Korea, followed by just metropolitan areas and then small cities only. The regional wages are seen to increase across the board when the market potential improves. It was also found that, when the market potential increases, the resulting wage hike of small cities tends to be greater than that of large metropolitan areas.

• Journal of Labour Economics
• /
• v.37 no.2
• /
• pp.1-47
• /
• 2014

Longitudinal analysis of individual wage data received from the Korea Labor and Income Panel Survey (KLIPS) for the 1998-2012 period reveals that nominal wage reductions are prevailing among job stayers. It is also found that the probability of nominal wage cut is higher in the period of lower inflation or higher unemployment, and affected by various individual or group characteristics. Additional analysis of two establishment-based average wage series and the KLIPS shows that real wages are substantially procyclical, which is attributed to the strong procyclicality of nominal wages rather than countercyclicality of inflation. Current findings defy wage-rigidity-based explanations of unemployment fluctuations or models that predict wage rigidity, inlcluding segmented labor market hypotheses.

• Journal of Distribution Science
• /
• v.15 no.4
• /
• pp.5-13
• /
• 2017

Purpose - This research analyzes the effects of Korean family ownership characteristics on firm value. The positive and negative effects of family ownership on Korean firm value were analyzed. If negative effects are evident, this research explores the factors that cause a decrease in firm value. Research design, data, and methodology - The study examined a total of 5,743 companies listed on the Korea Exchange from the period 2002 to 2012 using a panel data regression analysis. Result - An empirical analysis suggests that Korean family ownership diminishes firm value. Korean family firm value has been reduced when controlling shareholders are participated in management and pursue excessive wages, or make the management entrenchment effects associated with ownership-control disparity. When the controlling shareholders of family firms have increasing control rights over the shareholders' general meeting and the directors' board, the agency costs associated with seeking increasing executive wages or private benefits reduce firm value. Conclusions - This study has significance because it reveals the negative effect of family ownership in Korea on firm value. These negative effects can be the result of agency problems from controlling family shareholders seeking excessive wages or ownership-control disparity.

• Journal of Labour Economics
• /
• v.28 no.1
• /
• pp.61-82
• /
• 2005

We investigate wage differentials in Korea in the manufacturing industry, as well as factors affecting structural change in wage determination for the pre- and post-financial crisis regimes. We use the 1995 and 1999 data from the Survey Report on the Wage Structure (SRWS) from the Ministry of Labor. Principal components regression analysis is used to tackle multicollinearity. We employ factor analysis to reduce a set of variables to a smaller number, which contain observed and latent variables. Our empirical investigation provide evidences for changes in wages structure between 1995 and 1999. In 1995, the job quality factor is the most critical in the determination of wages, while in 1999, the industry attributes factor impacts greatly on the wages.

• Journal of Labour Economics
• /
• v.33 no.3
• /
• pp.47-88
• /
• 2010

Focusing on the Korean experience, particularly a recent amendment which extends maternity leave and increases financial benefits during maternity and childcare leave, this paper evaluates how such an expansion of benefits affects the employment and the hourly wages of young wages of childbearing age. Empirical results from a difference--in-difference-in-differences model having older warren, older men, and young men simultaneously as the control group suggest that neither the employment nor the hourly wages of young women are affected. This implies that the law change does not cause shifts in the labor supply curve and the labor demand curve for young women.

• Journal of Korean Society of Industrial and Systems Engineering
• /
• v.38 no.1
• /
• pp.90-100
• /
• 2015

This study is conducted to suggest ways to mitigate the mismatch phenomenon between job seekers who want to find right company for themselves and companies looking for appropriate new employees. For this purpose, this study improves the company assessment framework reflecting job seekers interests by using fuzzy analytic hierarchy process. The improved evaluation framework is a three-level hierarchical structure, where there are 4 groups at the top level, 12 factors at the intermediate level and 36 indexes at the bottom level. For the empirical analysis of the applicants preferences based on the improved model, a survey for F-AHP analysis is carried out to university students and then priorities of components in the evaluation model are calculated. Moreover, the differences of priority of the company assessment framework are analyzed for different genders, college years, and major divisions. The results show that job seekers' most concerning factors are wages, stability, working environments, and labor deal, which are ranked highly in this order and the differences in preferences for each type of job seekers (genders, college years, and major divisions) are obvious. The results also show that the male prefers wages to environment, on the other hand female does working environment to wages.

• Journal of Wellbeing Management and Applied Psychology
• /
• v.2 no.1
• /
• pp.9-19
• /
• 2019

The uniqueness of labour as a factor of production is that labour services cannot be separated from the employee. However, since the object of sale is only the services of the employee, not an employee himself, the labour conditions, determined by the labour and collective agreements or other agreements concluded at other levels and within the current legislation, are equally important. Speaking as a subject of labour, a person can realize his or her labour potential by the way of self-employment, that means to act as an independent producer seller of their products. Another way of labour potential realization is hiring, that means offering of the services as a hired employee to the employer, who is the subject of ownership. In this case there is an exchange under the principle: qualification and working time of the worker - for wages and profits. Each enterprise is confronted with a set of goals, among them - economic and social leadership. For their achievement the company uses all the available arsenal of resources - material, land, financial, labour. This indicates the equivalence of all types of resources in achieving the goal. But this is not quite true, because every resource can be included in production only through the activity of labour and people. And this activity depends on the attitude of the company to its employees, the degree of their motivation and stimulation.

• Journal of the Economic Geographical Society of Korea
• /
• v.12 no.4
• /
• pp.627-644
• /
• 2009

In the knowledge-based economy highlighting the importance of human capital, there has been a growing interest in human capital externalities as a fundamental engine of growth and development of a region. The purpose of this study is to analyze human capital externalities using 3-level hierarchical linear model(3-HLM), decomposing determinants of wages into three levels involving workers(level-1) nested within firms(level-2) nested within regions(level-3). This study separately estimates the effect of the average education level on the wages by three different schooling groups on the assumption that the intensity of knowledge spillovers varies with each group's schooling level. The main results are as follows; First, the coefficient of the average education level of a region shows 0.044, indicating that one-year increase in the average level of schooling could increase average individual earnings by 4.4%. Secondly, the external effects of human capital on three different schooling groups are considerably different, raising less than high school graduates' wages by 3.0%, college graduates' wages by 4.7%, and graduate schools' wages by 11.8%, respectively. Thirdly, well educated workers are much more sensitive to the variation of the regional education level than less educated ones when we apply the shares of each schooling group as alternative measures for the average level of education. Such findings of this study draw an implication that local governments could speed up regional economic growth in the knowledge-based economy by not only raising total human capital stock in a region but building the close networks that promote productivity-enhancing human capital external effects.

• Journal of Labour Economics
• /
• v.21 no.2
• /
• pp.47-69
• /
• 1998

• The Journal of Fisheries Business Administration
• /
• v.9 no.2
• /
• pp.1-25
• /
• 1978