Decomposition of Changes in Korean Wage Inequality, 1998-2007.

South Korea experienced a steep increase in wage inequality between the Asian financial crisis in 1997 and the global financial crisis in 2008. This paper investigates the causes of the sharp change during that time period by looking at the contributions of changes in the distributions of schooling...

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Publicado en:Journal of Labor Research Vol. 37; no. 1; pp. 1 - 29
Autores principales: Ghosh, Pallab, Lee, Jae
Formato: Artículo
Publicado: Springer Nature Mar2016
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Acceso en línea:Ver este registro en EBSCOhost
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      pub: Springer Nature
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        10.1007/s12122-015-9217-9
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        atl: Decomposition of Changes in Korean Wage Inequality, 1998-2007.
      aug:
        au:
          Ghosh, Pallab
          Lee, Jae
        affil:
          Department of Economics, University of Oklahoma, 308 Cate Center Drive, Room 158 CCD1 Norman 73072 USA
          Korea Institute for Industrial Economics & Trade, 370 Sicheong-daero Sejong 30147 Korea
      su:
        Asia
        South Korea
        Wages
        Financial crises
        Labor organizing
        Wage differentials
        Labor supply
        Decomposition method
      sug:
        subj:
          Wages
          Financial crises
          Labor organizing
          Wage differentials
          Labor supply
          Asia
          South Korea
          Temporary Help Services
          Labor Unions and Similar Labor Organizations
          Decomposition method
      keyword:
        50/10 and 90/50 percentile wage gaps
        C31
        J24
        J31
        Wage distribution function
        50/10 and 90/50 percentile wage gaps
        C31
        J24
        J31
        Wage distribution function
      ab: South Korea experienced a steep increase in wage inequality between the Asian financial crisis in 1997 and the global financial crisis in 2008. This paper investigates the causes of the sharp change during that time period by looking at the contributions of changes in the distributions of schooling and unionization. The effects are estimated applying two robust distributional function based decomposition methods on Korean Labor and Panel Survey data for the time period 1998-2007. The results suggest changes in the distribution of schooling can explain about 10 % of the changes in the 90/50 percentile wage gap. The declining unionization rate does not have much impact on the upward trend of Korean wage inequality. In addition, aggregate decomposition results suggest that changes in labor force composition can explain a significant proportion of the total wage changes in the upper-tail of the distribution. Based on our findings we provide a list of policy recommendations to address the wage inequality issue in Korea.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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