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This paper examines how women react to employment environments when deciding on marriage and childbirth. This is accomplished by comparing female versus male retirement probabilities at age in their 30s by industry. Based on Korean Labor and Income Panel data between 2013-2019, We find that under harsh conditions in the labor market, the probability of women getting married, and hence giving birth, decreases. To put more detail into this, data findings obtained from the Regional Employment Surveys for the period between 2014 and 2019 show that the less-favorable-to-women industries have indicated a reduced and stagnant rate of married female employees over the last five years. These findings show that the disadvantages from the labor market reduce the chances for women to get married and give birth. [ABSTRACT FROM AUTHOR]

This paper empirically examines the potential non-linearity of the impact of population aging on labor productivity while also considering potential variations across industries, using OECD country panel data. The empirical analysis results indicate that in most industry sectors, there is an inverse U-shaped relationship between the proportion of the elderly population and productivity, while the proportion of the working-age population and productivity exhibits a U-shaped relationship. By using regression analysis coefficients and population projections from Statistics Korea, this study calculated changes in labor productivity by industry resulting from future population aging. According to the results, the overall manufacturing sector is projected to decline until the mid-2030s before experiencing long-term growth, while the overall service sector is expected to remain in a long-term decline. Among manufacturing industries, the productivity of the basic metal sector is projected to increase in the long term. Among service industries, the information and communication sector is anticipated to experience either a lesser decline or potentially an increase. [ABSTRACT FROM AUTHOR]

Delayed mandatory retirement can have a negative effect on youth employment at the absence of wage adjustment. This paper uses the extended work periods by delayed retirement among jobs to identify the effects of delayed retirement age on youth employment in Korea. In the 2017~19 period, full-time equivalent (FTE) wage/salary jobs are estimated to have decreased by 6.0% among the 23-27 years old, and FTE regular wage/salary jobs by 4.5%. One person increase of the 56-60 years old FTE wage/salary employment is estimated to have replaced .29~1.14 FTE wage/salary jobs among the youth. Job losses were more pronounced among young men, which implies that entry-level jobs were reallocated from men to women. [ABSTRACT FROM AUTHOR]

This paper analyzed the effects of parental income and educational background on the wages of adolescent children. It was verified whether income inheritance has intensified over time and the extent to which parental income affects children's wages. When a father's income, measured subjectively, increases by one unit, the wages of children born in the 1980s and 1990s increase by 9.8% and 9.1%, respectively. On the other hand, the wage increase rate for children born before 1980 was not statistically significant. According to this analysis, the effect of parental income on children's wages has become more pronounced relatively recently. In addition, the wages of children in the 10th quintile increased by 33% compared to the 1st quintile of parental income, indicating that the inheritance of children's wages was particularly large in the highest quintile of parental income. [ABSTRACT FROM AUTHOR]

This paper analyzes long-term effects of the private tutoring prohibition policy in the 1980's on labor market performances. Comparing two cohorts who attended a high school before and after the complete ban on private tutoring, we find that the monthly income and wage of the latter cohort were permanently lower than those of the former cohort, and the labor force participation and work hours were adversely affected among the women in the latter cohort. Our findings are robust even when we apply the Oster’s correction method for unobserved compounders or consider an independent effect from the expansion policy on the college freshman size which was implemented concurrently with the private tutoring ban. We provide several possible mechanisms through which a temporary policy on private tutoring can have long term effects on labor market outcomes. [ABSTRACT FROM AUTHOR]

This paper studies change in parents’ childcare time in South Korea using the 1999-2019 Korean Time Use Survey. We find that childcare time of both mothers and fathers have significantly increased over the past two decades and that the gap between college graduate and less-than college graduate parents’ childcare time has also widened. The positive education gradient in mother’s childcare time is observed regardless of her labor force participation or whether there is a young child in the household, whereas the positive education gradient in father’s childcare time is mostly driven by those with a young child and during weekends. The findings suggest that differences in parental time input may also weaken intergenerational mobility in South Korea. [ABSTRACT FROM AUTHOR]

This paper shows that the effects of child-care subsidy on labor supply differ among various types of mothers, and attempts to identify the effects by mother types. The difference-in-difference estimates indicate that, although the average effects are negligible, the child-care subsidy is likely to have reduced labor supply more among the mothers with stronger labor market attachment. As the result, the composition of working mothers and their hours is estimated to have qualitatively somewhat declined following the expansion of child-care subsidy. [ABSTRACT FROM AUTHOR]

This paper analyzes the effect of delayed mandatory retirement on job separation and non-employment. Delayed mandatory retirement enacted in 2013 increased the option value of staying on the current jobs and reduced voluntary separation among the regular workers. However, involuntary job losses increased among non-regular (temporary and daily) workers reflecting higher labor costs. In sum, total wage/salary employment has decreased while the employment gap between regular and non-regular workers has widened. [ABSTRACT FROM AUTHOR]

This paper compares the effects of income transfer and wage subsidy in a simple general equilibrium model. The redistributive effects of both policies are smaller, the more intensive in low wage workers are the luxury goods production. Wage subsidy contributes more to employment and GDP relative to income subsidy, but its redistributive effects can be smaller depending on the elasticities of labor demand supply. More complete empirical analysis appears due on the effects of both policies in order to design an optimal mix of efficiency and equity. [ABSTRACT FROM AUTHOR]

This paper estimates the effects on jobs and total hours of the newly introduced 52-hour cap on weekly hours among the firms with 300 or more regular workers. The difference in difference estimation applied to annual log changes produces no strong evidence for job and total hour-input growths among regular workers, implying that higher labor costs have offset work-sharing effects, if any. Most of the burdens of adjustment appear to have disproportionately fallen onto non-regular workers in terms of fewer jobs and shorter hours, implying greater wage inequality. These results suggest the need for policy revisions to reduce the potentially negative effects on jobs and earnings that the extended coverage of the new cap is likely to cause among smaller firms [ABSTRACT FROM AUTHOR]

This paper estimates the employment effects among 55~59 years old men of delayed mandatory retirement act between 2016 and 2019. Although the positive employment effects appear to have reclined during the period, they have remained non-trivial and may have encroached youth employment. The results suggest that wages should be flexibly adjusted in the market so that labor demand can sufficiently expand to accommodate the increased labor supply among the old without hurting the young. [ABSTRACT FROM AUTHOR]

Employing bunching estimators of Cengiz et al. (2019) for data from the “Economically Active Population Survey,” this paper estimates the effect of minimum wage increases on the volume of waged employment for the period 2009-2019. A bunching estimator, which exploits yearly changes in the hourly wage distribution due to the minimum wage hike, can be easily applied to the Korean labor market, which adopts the yearly single national minimum wage. The estimation results suggest that an increase in the annual minimum wage during the period from 2009 to 2019 had a negative effect on the volume of waged employment. A 10% increase in the (real) minimum wage leads to a 1.42~1.74% decrease in the volume of waged employment. Disemployment effects of minimum wage hikes are greater in the sector with a higher proportion of minimum wage workers. It is necessary to carefully consider disemployment effects in determining the level of the minimum wage. [ABSTRACT FROM AUTHOR]

This paper studies how households who received Covid-19 transfers in cash used their one-time transfers. The transfers were paid in cash for welfare recipient households, which accounted for 12.9% of all households. Using a survey data, it is found that the cash transfers are mostly used for consumption expenditure, and 21.7 percent of the cash transfer used are spent on additional consumption not originally planned. The consumption response to cash transfers is greater in households that experienced job or income loss because of Covid-19. [ABSTRACT FROM AUTHOR]

The paper focuses on the question of whether and how the labor underutilization indicator supplements the unemployment rate. The research is based on the differences in the labor market behavior among three groups of the not-employed; the unemployed, potential labor force and the rest of outside the labor force. The annual transition rate among the labor market states shows that the potential labor force has the explicit unmet need for employment different from the rest of the outside the labor force. The multinomial logit regression controlling the effects of individual characteristics rejects the hypothesis that the potential labor forces are behaviorally identical to the unemployed. The evidence shows that the two indices should be interpreted distinctively. [ABSTRACT FROM AUTHOR]

This paper investigates how the provision of full child care subsidy to infants and toddlers differently affected female labor supply and fertility rate depending on the level of supply of child care centers in the place of residence. Our results on labor supply show that the higher the supply rate of childcare centers in residential areas, the higher the probability of career maintenance for multi-child mothers who are more likely to be admitted to a childcare facility. The results on the fertility rate show that the first child's fertility rate has increased since the support of childcare expenses in areas with higher rates of childcare centers. In the places where the supply rate of publicly-funded childcare centers is high, the second child's fertility rate has also increased significantly since the support of childcare expenses. This suggests that the quality of child care is an essential factor in determining the birth rate. Our results suggest that the effects of child care support on women's labor supply and fertility rate may differ depending on the priority of entering child care centers according to birth order and the degree of quantitative and qualitative supply of child care centers in the place of residence. [ABSTRACT FROM AUTHOR]

This papers reviews the concept of happiness which has begun to be widely used in many fields. The concept of happiness is extensively examined within the analytical concept of subjective well-being. Three components of subjective well-being are clearly summarized in the paper. In addition, related questionaries measuring those components are provided from the most widely accepted in the study of happiness. The role of two factors such as income and unemployment in determining individuals' happiness is also discussed. [ABSTRACT FROM AUTHOR]

This paper incorporates the Diamond-Mortensen-Pissarides search and matching framework into the DSGE model. We estimate the model using a Bayesian estimation methodology on Korean data (1991:1-2020:1). Using the estimated model, we investigate the quantitative effects of wage subsidies. Wage subsidies increase matched firms’ profits by reducing labor costs which leads to increases in new matches, employment and output. We find that for one percent of GDP in wage subsidies, the cumulative increase in the output level will be greater than 1 percent. [ABSTRACT FROM AUTHOR]

This paper analyzes and compares the effects of various government subsidies to improve labor productivity. Laborers are differentiated in learning ability, and duopsonists in the labor market sequentially determine the quality levels and wages of employed laborers in a two-stage noncooperative game under perfect information. If a subsidy is given to the advanced firm in quality and productivity of labor, that firm will prefer to intensify wage competition due to strengthening its competitiveness in the labor market, and attempt to lower its quality in order to reduce the degree of differentiation in quality. At that time, the other firm wants to avoid competition because of its weakened competitiveness, and may have an incentive to lower the quality level to expand the differentiation. If the government subsidizes low-quality and low-productivity firm, it is motivated to increase its quality level to reduce differentiation due to the strengthening of competitiveness, and its competitor has an incentive to improve the quality to expand the differentiation. And there is no significant difference in whether payments are made to laborers or firms. [ABSTRACT FROM AUTHOR]

This paper estimates a matching function in Korea by using the method of Borowczyk-Martins et al. (2013) in order to mitigate endogeneity problems. The endogeneity was controlled through the GMM estimation by approximating the unobserved matching efficiency with the ARMA(p,q) process. The monthly data from the Economically Active Population Survey and Labor Force Survey at Establishments from June 2009 to December 2019 were used for the estimation. The matching elasticity that indicates the elasticity of new hires with respect to vacancies was estimated to be 0.859. When excluding 2019 samples, which had a large number of direct jobs provided by the government, the matching elasticity was lowered to 0.755, but still higher than that of other countries. [ABSTRACT FROM AUTHOR]

This paper analyzes the effect of marriage subsidy, which was provided by some municipalities of South Korea from 2006, on marriage. Marriage subsidy, targeted for international marriage between Korean men and foreign women, increases the economic incentive for international marriage. Using the Korean marriage record during 2004-2018 and exploiting the variation in marriage subsidy across regions(administrative level 2, si/gun/gu) and years with difference-in-differences method, I find that marriage subsidy significantly increases the probability of a single Korean man marrying a foreign woman. I found no evidence on crowd out effect on marrying a Korean woman, and the effect of subsidy on total marriage was significantly positive. Subgroup analysis shows that the effect of marriage subsidy on international marriage was strongest for the older and high school graduated men. [ABSTRACT FROM AUTHOR]

According to the role model effect, gender of faculty plays an important role in students' employment. This paper investigates the effect of female faculties on female college students' employment in Korea. The fixed effect estimation results show that the percentage of female faculty has no statistically significant effect on female students' employment rate, although the 1%p increase of female faculty appears to be related with the employment rate of female students by 0.102%p in estimation using pooled OLS estimation. We have the almost same results even with dividing female students by major fields. These results can be interpreted the students' employment rate may be influenced by many other factors, such as personal characteristics, abilities, and family background besides faculty gender. We find that there is no empirical evidence of statistically significant effect of the faculty gender on the employment rate of female students. [ABSTRACT FROM AUTHOR]

This paper investigates the determinants of household splitting and offers the implication on relative poverty. Household splitting is more likely among high-income households, and also ensued by an increase in the number of job holders and household income, which indicate that household splitting has the nature of a normal good. A counter-factual analysis suggests that the relative poverty rate ould have been only one-third to one-eighth of the actual rate among the old households if they had lived together with their children. These results indicate that the social policy toward the old households without due consideration on the children’s financial capability is quite likely to bring about the inefficiency of wasting tax money on essentially non-poor households. [ABSTRACT FROM AUTHOR]

In 2011, the childcare leave benefits in South Korea were revamped to be proportional to wages, allowing high-earnings women to receive additional subsidies. This paper examines the fertility effect of the increased parental leave benefits exploiting this policy change. The identification strategy is based on the difference-in-differences (DD) method, but it reflects that the qualification to be treated is time-varying. Applying the Korean Labor and Income Panel Study data to the “stayer DD” model, it finds that the increased parental-leave subsidy positively affects the first childbirth among working mothers. [ABSTRACT FROM AUTHOR]

This paper examines the impact of on-the-job training (OJT) programs on turnover rates and employment status in the labor market. Exploiting the administrative data (the Employment Insurance Database), we apply the propensity score matching method to investigate 1) whether OJT participation increases the probability of remaining in the labor market after the job training, and 2) whether trainees are more likely to transition to a new employer. Our findings reveal positive effects of OJT on the continuous employment (2.4∼5.3%p). We also observe that trainees show lower rates of turnover for some part of the study period, from 2008 to 2015. [ABSTRACT FROM AUTHOR]

This paper investigates the relationship between the occupational gender wage gap and the proportion of high wage earning female workers in Korea. The main idea is that an increase in the number of high wage earning female workers in the workplace could lead to a decrease in the gender wage gap by eradicating the prejudice or reducing the statistical discrimination on female workers. We constructed a panel dataset by using the raw data from the Korean Survey Report on Labor Conditions by Employment between 2009 and 2016. The result shows that greater presences of high wage earning female workers in male dominant occupations have statistically significant negative impacts on residual gender earning dispersion. [ABSTRACT FROM AUTHOR]

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. [ABSTRACT FROM AUTHOR]

This paper estimates the effect of the minimum wage increment on employment and work-hour of new workers in Korea using the data from the Survey on Labor Conditions by Type of Employment (SLCTE) from 2008 to 2017. We construct worker groups by sex, age, and education to mitigate endogeneity problem in estimating the effect of minimum wage increment. The result shows that the minimum wage increment leads to decrease of new employment and increase of the ratio of new workers who work less than 15 hours per week. Especially, women, the elderly, the youth, and under high school education level group are sensitive to the minimum wage increment. [ABSTRACT FROM AUTHOR]

This paper examines effects of the Korean Student Human Rights Ordinance on student behavior. The ordinance was put into effect in some municipalities (Seoul, Kyongki, Kwanju, Jonbuk) from 2010. Since the ordinance prohibits corporal punishment and other authoritative treatments of students in school, the paper estimates effects of indulgent teaching on student behaviors. Our difference-in-differences estimates suggest that the ordinance has little effect on the students' propensity to behave, intimacy with classmates and teachers and overall satisfaction with school life. In contrast, the ordinance increases the likelihood of students, especially low-performing and mid-performing students suffering from problem behaviors of other students. This implies that some (probably low-performing and mid-performing) students tend to commit more problem behaviors after the ordinance has taken effect. [ABSTRACT FROM AUTHOR]

The 1995 tax reform in Korea has brought adjustment to the tax bracket, marginal tax rate, and tax deduction system which resulted in significant decrease in the income tax progressivity. In this paper we study the causal effect of the tax reform on male labor supply using difference-in-differences method. Using the data from Economic Active Population Survey (EAPS) and Daewoo Panel Data, we find about 1.5% increase in the hours worked of male wage workers. [ABSTRACT FROM AUTHOR]

This paper analyzes the effects of three factors on the firm-size wage premium which have not been considered in previous studies: the worker compositions within firms, the wage differentials between contractors and subcontractors, and the performance pay and rent-sharing behaviors of firms. The main results are as follows. First, even after controlling for the various worker characteristics, the differences in shares of highly educated workers, managers, and professionals between large and small firms make the size-wage premium larger. Secondly, wage differentials between contractors and subcontractors also affect the size-wage premium in the manufacturing sector. Thirdly, high performance pay and active rent-sharing behaviors of large manufacturing firms make the size-wage premium larger. These results imply that a positive matching effect among skilled workers, a structural problem between contractors and subcontractors, and differences in rent-sharing behaviors between large and small firms have affected the firm-size wage premium in the South Korean labor market. [ABSTRACT FROM AUTHOR]

This paper presents a model for the Minimum Wage Commission's decision process and analyzes the strategic actions of the participants in the process. The Minimum Wage Commission has used two ways of setting the minimum wage. The commission has voted either on the labor’s against the management’ final proposals or has voted on the public interest commissioners’ proposal. According to the model, the minimum wage is determined at a level that is very close to or at a level preferred by the median voter among the public interest commissioners. But the probability of adopting labor or management proposal is ex-ante the same. Empirical evidence from the minimum wage decision process is consistent with the predictions of the model. The probability of adopting the labor’s proposal in the minimum wage commission voting is not statistically significantly different from 50%. The model also suggests that the preference of the median voter among public interest commissioners determines the minimum wage level. Since the government appoints public interest commissioners and thus, in fact, the median voters, the government can decide the minimum wage level. This proposition is also consistent with data. The annual growth rate of the minimum wage under the progressive governments is higher than under conservative governments. [ABSTRACT FROM AUTHOR]

The foremost aim of the paper is to evaluate the flexibility and stability of the Korean labor market through a cross-country comparison with OECD countries. Evaluating by the OECD Employment Protection Legislation Index, the flexibility of permanent job layoff in Korea is close to the average of OECD countries. Employment of temporary workers appears to be relatively flexible allowing for effective indicators such as the proportion of temporary workers among paid employees. As regards security, the levels of job security, income security and combination security are all far below the OECD average. A panel data analysis of OECD countries reveals that labor productivity increases as regulations on permanent job layoff become looser and regulations on temporary employment become more rigorous. [ABSTRACT FROM AUTHOR]

The Earned Income Tax Credit (EITC) is a policy that supports low-income households financially as well as provides an economic incentive to participate in the labor market. Thus, estimating the causal effect of the policy on the labor force participation rate of low-income households is critical for the policy evaluation. In this paper, we exploit the variation in the eligibility to the EITC and the size of the benefit over several reforms of the EITC in South Korea since 2008 and estimate the impact on the participation in the labor market. Using data from four major household surveys, we find that the results are mixed; in some samples and specifications, we find that the effect is positive and statistically significant, while it is insignificant in others. The estimated effect is more likely to be positive and significant when we restrict the sample to the period before 2014. It is an important topic of future research whether the EITC’s effect gets weaker because it is extended to cover the self-employed and beneficiaries of the National Basic Livelihood Security. [ABSTRACT FROM AUTHOR]

This paper examines the impact of internal migration on wage growth among college graduates using Propensity Score Matching methods. We define migration as moving between Seoul Metropolitan Area (SMA) and non-SMA based on the locations of graduates' first and second jobs. We also take the direction of migration into account for examining the wage premium in SMA. In order to estimate the impact of migration on wage growth, we use the Graduate Occupational Mobility Survey (2010GOMS) coupled with other supplementary data such as College Scholastic Ability Test score and local characteristic variables. The results reveals that graduates moving from SMA to non-SMA do not experience significant wage growth. However, we find that graduates moving from non-SMA to SMA experience an increase in their monthly wage about 170,000 〜 186,000 KRW on average (9.5〜 10.3% of their monthly wage on the first job). [ABSTRACT FROM AUTHOR]

The paper reviews the trend of youth employment in Korea in recent years and examines whether the change in labor demand through declining business dynamism is one of the causes. The analysis based on Employment Insurance database 五nds that the rate of job creation declined over the period from 1999 to 2014 and that the job creation of small- and medium-sized enterprises fell sharply. This is partly explained by entry of fewer firms than before given that young firms tend to experience rapid employment growth. In fact, it is confirmed that the share of firms under age 6 in employment level and job creation declined. The finding that young firms employ young workers more than old firms suggests that a smaller role of young firms in the economy had a negative effect on youth employment. [ABSTRACT FROM AUTHOR]

The paper investigates the determinants of female, maternal, and male employment in a comparable setting using an unbalanced panel data of 29 OECD countries from 2000-2013. Our empirical results show that early childhood childcare and education (ECEC) is positively associated with female employment. Furthermore, we find that ECEC does not hurt male employment. We also find that tax rates on the second earner are negatively associated with male employment as well as female employment. The estimated coefficients of ECEC, social expenditure, tax rates, and tertiary education attainment rates in maternal employment regressions are much larger in the absolute value than those in female employment regressions. Policy implications of our analysis are that an expansion of ECEC, a lower tax on secondary earner, and education are key to promote the total employment as well as female employment. [ABSTRACT FROM AUTHOR]

In this paper, we describe the economic model of Becker's demand for child and examine whether the number of children and spending on private education in Korea can be explained by this model. The results show that household income has no significant effect on the number of children but has a significant positive effect on the spending on private education per child. These results suggest that the low fertility rate in Korea may increase the demand of parents for the quality of their children due to the increase of household income. And the higher the household income, the parents' education level and the child's age, the higher the spending on private education per child. These results show that there is a possibility of education and wealth transfer between parents and children through educational investment. [ABSTRACT FROM AUTHOR]

Recent empirical studies highlight the importance of between-firm or between-establishment factors in rising wage inequality. Examining the establishment-level data from the Mining and Manufacturing Survey of 2000-14, this paper finds that overall between-establishment wage dispersion has increased in Korea. However, unlike other OECD countries, the divergence occured in the lower tail of the wage distribution. Dispersion in labor productivity exhibits a similar movement, therefore explains the widening wage dispersion. In contrast, the link between wages and total factor productivity is much weaker, which appears to be associated with inefficient capital reallocation. I also find much heterogeneity in the productivity-wage relationship across productivity distribution. The most productive establishments turn the smallest portion of productivity gains into wage increases. [ABSTRACT FROM AUTHOR]

This study aims to examine the degree of quantitative flexibility in the Korean labor market and its evolution, with special reference to the speed of employment adjustment. The implications of the analysis are as follows. First, contrary to the global trend of increasing flexibility, the Korean labor market has become more rigid than flexible, consistent with domestic and international assessments, when analyzed through the speed of employment adjustment. Second, as an export-oriented open economy in the era of digital transformation and AI, the policy implications for labor market polarization include the establishment of flexible workforce management and fair and cooperative industrial relations practices in the large enterprise sector, the creation of an environment to increase quantitative and functional flexibility by strengthening investment in education and training, exploration of ways to utilize foreign workers to alleviate labor shortages in the SME sector, and reform efforts to strengthen working hours flexibility [ABSTRACT FROM AUTHOR]

This paper investigates the cyclical job reallocation across establishments using Moscarini and Postel-Vinay(2016) dynamic job ladder model. A dynamic job ladder model, more sophisticated version compared to standard stationary job ladder, is adopted where workers always seek for better jobs either when unemployed or through on-the-job search while employed. Using Korea’s Labor Force Survey at Establishments(LFSE), sample distribution functions of job offers for job ladder or upward worker flow from smaller to larger establishments are estimated by the minimum distance method. The hypothesis of upward worker flow from smaller, less productive, and lower-paying establishments to larger, more productive, and high-paying employers is confirmed as workers from lower ranked employers always face higher probability to receive job offers from higher ranked firms. Upward worker flow is also found to be posititively correlated with business cycles. However, recent increasing trend in upward worker flow from larger establishments may be an overestimation due to misclassification of rank relevant to an establishment. [ABSTRACT FROM AUTHOR]

This paper analyzes the effect of gender segregation across major among youth college graduates on the change in gender wage gap. As a result of the JMP decomposition, the gender segregation across major was eased in four-year colleges, but the effect was not sufficient to affect the gender wage gap. On the other hand, the relative compensation for the engineering field, which is a male-dominated major, has increased significantly, resulting in an effect of increasing the gender wage gap. In addition, the relative compensation for engineering increased significantly as the university ranked higher. This suggests that the increase in relative compensation, which mainly appeared in the high-skilled engineering field, had the effect of increasing the gender wage gap. [ABSTRACT FROM AUTHOR]

Using Korea Labor and Income Panel Surveys data, this paper estimates the effect of schooling level on income over time and the effect of children's education level on intergenerational income persistence. The results show that the impact of education level on income decreased over time. Also, intergenerational income persistence, measured as a dummy variable that has value one if children's income percentile group is same as the father's, increased with children's educational attainment only when the father is in upper income percentile groups. These findings indicate that education fails to play a significant role of the economic ladder and does not much help in raising intergenerational income mobility. Rather, education may possibly function as a means of intergenerational transmission of wealth through parental investment in their children's private education. [ABSTRACT FROM AUTHOR]

This paper examined the impact of student loan on job search duration, explicitly considering the type of student loan. The data was collected from Korean Education & Employment Panel (KEEP) study released by KRIVET. The survival analysis shows the following two patterns. First, the students who used the student loan with guarantee tended to have longer job search duration of job search. Second, the students with the income contingent loan tended to have shorter job search duration to end up with lower wage. [ABSTRACT FROM AUTHOR]

This paper estimates the public and private sector wage gap trend from 2000 to 2014 using ‘Korean Labor and Income Panel Study.' We account for unobserved fixed effect by using 1st differencing log wage in order to allow the gap to vary over time. Standard OLS estimates present the public sector wage is 10% higher than private sector on average. Moreover, the public sector wage premium displays the inverted V shape: sharply increasing up to 2006 and decreasing from 2007 to 2014. However, after controlling unobserved fixed effect, the public sector wage premium disappears and does not display the inverted V shape any more. [ABSTRACT FROM AUTHOR]

This paper examines the effects of COVID-19 on the working hours and wages by employment types of wage workers. Using the Economically Active Population Survey-Supplementary Survey by Employment Types(2017-2020), I found that due to COVID-19, non-regular workers reduced their working hours more than regular workers, shrinking their opportunities to generate wage income. During the same period, the working hours and wage gap between new regular and non-regular workers widened, this was largely in part-time and short-term workers. As the working conditions change based on the initial level, these results show that efforts to improve their(new and short term workers) working conditions can contribute to mitigating labor market inequality. [ABSTRACT FROM AUTHOR]

This paper estimates the peer effect of how improving the under-performing students can affect the academic performance of other students, focusing on the ratio of students more than proficient. We take advantage of the regression discontinuity design of the policy assignment rule of School-for-Improvement (SFI), which targeted the under-performing schools as an identification strategy. The estimation results from the 2009-2010 NAEA (National Assessment of Educational Achievement) reveal that the decrease of the ratio of under-performing students tends to increase the ratio of excellent or proficient students at around the policy cutoff. The finding turns out to be robust to various falsification tests. [ABSTRACT FROM AUTHOR]

This paper examines the role of adverse working environments in the determination of workers' compensation in South Korean. I use the Third Korean Working Conditions Survey(2011), Occupational Safety and Health Research Institute that provide relevant variables in objective and subjective compensation and workers of diverse working environment. I find that risk factors in adverse working environments have a very minor role in the determination of individual wages. In contrast, adverse working environments have significant relationship with the level of compensation satisfaction. In addition, the results show that workers are more likely to receive compensation from psychological risk than physical risk. And women receive much more compensation in the psychological risk. These results provide useful information for improvement of working environments. [ABSTRACT FROM AUTHOR]

This paper first constructs an occupation code-skill match for the Korean labor market by following Autor-Dorn classification on the tasks framework. Over the last 34 years, middle-skill jobs have vanished enormously, while high-skill and low-skill jobs have both increased. Also, jobs have polarized more rapidly in recessions and changed uniquely by pushing old workers into middle and low-skilled jobs and the inter-sector reallocation of workers. Furthermore, jobless recoveries in the recent business cycle could have been alleviated considerably if job polarization had been mitigated. [ABSTRACT FROM AUTHOR]

This paper estimates the effect of household size and its changes on income inequality. Household formation is an important inequality-reducing mechanism through income pooling and collective consumption. The increase in small households, reflecting lower fertility rate and the increase in both nuclear and old families, has weakened the inequality-reducing effect of household formation. In contrast, additional workers in households and their income have strengthened the inequality-reducing effect of household formation. Given the increasing trend of old families, these results suggest for a balanced policy package that promotes employment and does not discourage co-habitation in order to maintain the inequality-reducing effect of household formation. [ABSTRACT FROM AUTHOR]

This paper compares income and consumption inequalities in Korea and applies the permanent income hypothesis to interpret the linkage between the two inequalities. Income inequality has been increasing since 1990 while consumption inequality had been decreasing until the early 2000s when the two inequalities started to co-move. Permanent income hypothesis explains reasonably well the consumption pattern in the recent period, which reflects the increased access to asset markets by the Korean households. Consequently, the co-movement of income and consumption inequalities in the recent period implies that inequality in permanent income components are fluctuating. [ABSTRACT FROM AUTHOR]