• Title/Summary/Keyword: Wage inequality

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A Study of Factor Decomposition of Wage Ineqaulity of Korea, 2006-2015 (임금 불평등 변화의 요인분해: 2006-2015년)

  • Jeong, Jun-Ho;Cheon, Byung-You;Chang, Jiyeun
    • Korean Journal of Labor Studies
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    • v.23 no.2
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    • pp.47-77
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    • 2017
  • This paper analyzes the changes in wage inequality and its contributing factors since the mid-2000s. Although trends vary by data and wage indices, the Gini coefficient of the total wage of all workers shows an increasing trend due to the part-time increase of less than 35 hours per week, while the wage Gini coefficient of hourly wages and the total wage Gini coefficient of full-time workers showed a declining trend. Part-time increases have increased inequality based on total wages, but part-time hourly wage increases can be considered to have reduced hourly wage inequality. Therefore, as a result of decomposing the factor of Gini coefficient reduction only for full-time workers, factors that contributed absolutely to inequality reduction were variables such as job tenure, career, and occupation, and employment type variable has little effects, and the establishment size variable deepens inequality. The variables such as industry, age, and education did not contribute significantly to the inequality change. This is attributed to the decline in wage premiums for job tenure and management and professional jobs and the increase in wage premiums for large-scale businesses.

Regional Structure of Wage Inequality in Post-reform China (중국의 경제개혁 후 임금격차의 지역구조)

  • 이원호
    • Journal of the Korean Geographical Society
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    • v.35 no.5
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    • pp.701-716
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    • 2000
  • This study examines patterms of wage inequality across ownership types and its regional structure in post-reform China in order to understand an emerging process of inequality. Using industrial wage data, I explored historical changes of cross-ownership wage inequality and its spatial differentiation during the reform period. This stuy found that pattems of wage inequality need to be understood in the context of changing redistributive economy which shapes state-enterprise relation in china's industrial sector. This relationship in turn determines labor market outcomes during the reform period including wage inequality. Regional structure of cross-ownership wage inequality also needs to be understood in terms of the differentiated process in which reqional wage levels are related to different wage factors. The findings have significant implications for understanding new patterns of soical and spatial inequalities in post-reform China.

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Minimum Wages and Wage Inequality in the OECD Countries

  • Joe, Dong-Hee;Moon, Seongman
    • East Asian Economic Review
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    • v.24 no.3
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    • pp.253-273
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    • 2020
  • This paper investigates the impact of the effective minimum wage, defined as the log difference between the minimum and the median wages, on wage inequalities in the OECD countries. Unlike the previous studies that focus on single countries in which the minimum wage has no cross-sectional variation and rely instead on within-country variations of wage distribution across regions or socio-economic characteristics, we use a country panel that allows for both cross-sectional and time-series variations in minimum wage. We also control for more factors than in the previous studies whose absence may cause endogeneity. Our results confirm the previous findings that increases in minimum wage alleviate the wage inequality at the lower tail of the wage distribution, while having little effect at the upper tail. The estimated effect is larger for women than for men, which is consistent with the fact that the share of workers who are directly affected by the changes in minimum wage is bigger among women than men. An application of the IVs of Autor, Manning and Smith (2016) supports the robustness of our findings.

An Analysis of Influential Factors on Income Inequality Caused by Capital and Wage Incomes: Evidence from Korea with Cointegration Approach (한국의 임금소득과 자본소득이 소득불평등에 미치는 영향 분석: 공적분 추정에 의한 접근)

  • Rhee, Hyun-Jae
    • The Journal of the Korea Contents Association
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    • v.19 no.6
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    • pp.387-401
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    • 2019
  • The aim of this study is to investigate the effects of income inequality caused by capital and wage incomes under globalized economic system in Korea. Empirical evidences which are obtained by cointegration methodology reveal that the effects resulted from capital and wage incomes to income inequality are alternative between short-run and long-run. And, the wage income has stronger impact on income inequality than the capital income. This might be occured as a result of that inbound foreign capital seems not to contribute to economic activity in real sector. It also has to be mentioned that the income inequality is negatively influenced by international trade in the short run and in the long run as well. To this end, it would be concluded that well-organized distribution system for wage income should be established, accordingly. And, forward and backward linkages in exporting industry have to be re-evaluated in order to improve income inequality in Korea.

The Difference of Health According to employment Status and Income Level of Wage-Earners (임금근로자의 고용형태와 소득수준에 따른 건강차이)

  • Woo, Hye-Kyung;Moon, Ok-Ryun;Park, Jong-Hyock
    • Health Policy and Management
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    • v.19 no.2
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    • pp.85-110
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    • 2009
  • The aim of this study was to examine whether health status is different according to employment status and income level in wage-earners. We analyzed wage-earners of 2199 men and 1194 women aged 30-64 years, using data from the 2006 Korean Labor and Income Panel Study(KLIPS). The difference of health status according to employment status and income level was compared with the multiple logistic regression and the standardized concentration index of ill-health. The risk of ill-health was high when waged-earners had low income. The same is true for poor employment status when their employment status was unstable as in manual laborers, irregular workers, temporary, daily workers or part-time workers. furthermore, the wage-earners with lower income and a relatively disadvantageous employment status showed the lowest health status compared to other groups. Ill-health was relatively more concentrated in lower income group and poor employment status. This study identified the existence of health inequality among various employment status of wage-earners. It is suggested that policies that deal with the inequality in social class may have an important impact on the health of the population.

Trade and Inequality in the Digital Economy (디지털경제에서의 국제무역과 소득격차)

  • Yoon, Sang-Chul
    • Journal of Labour Economics
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    • v.28 no.2
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    • pp.29-54
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    • 2005
  • This paper presents a simple two-sector general equilibrium model of noncomparative advantage trade between structurally identical advanced economies. Attention has focused on the effects of trade in information technology (IT) goods and services on the wage inequality in the digital economy. The model confirms and illustrates that wage inequality in the digital economy reflect trade in IT goods and services between advanced economies. In particular, this paper shows that even though the relative price of skilled labor-intensive technology good is declined with trade in IT goods and services, the wage of skilled labor increases. The reason is that as Jorgenson (2001) has empirically found, the price elasticity of demand for the technology goods is elastic.

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Labour Market institutions, Wage Dispersion, and Social Policy (노동시장 제도, 임금분산, 그리고 복지정책)

  • Hong, Kyung-Zoon
    • Korean Journal of Social Welfare
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    • v.59 no.4
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    • pp.297-317
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    • 2007
  • In this article, I want to demonstrate wage equality increases support for welfare expenditures while the wage equality depends on how labour market institutions are organized. In other words, this study tries to show that there can be institutional complementarity between inequality-reducing labour market institutions and generous social policy. In the first section, I develop a theoretical models which deal(1) how the inequality of income affects the political support for welfare expenditure(2) how the configurations of labour market institutions affect income inequality in the labour market. In the following section, this study tests the models with data on welfare spending, configurations of labour market institutions, and the inequality of wage and salaries in 14 welfare states from 1980 to 1995. Empirical analysis also provides support for key implications of the models. These models and empirical findings may show that the institutional complementarity stems from the interdependence of institutional influences on actors' decision-making. Moreover, this study suggests welfare policy are always considered with labour market institutions.

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The Impact of Outward FDI on the South Korean Labor Market: Evidence on the Wages of Four Types of Workers

  • Lee, Hongshik;Kim, Hongmin;Sim, Soonhyung
    • East Asian Economic Review
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    • v.18 no.1
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    • pp.29-54
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    • 2014
  • The purpose of this research is to identify the relation between OFDI (Outward Foreign Direct Investment) and wage inequality. In order to analyze various effects of OFDI on wages depending on the types of workers, the research classified laborers into four categories: permanent/skilled worker, permanent/unskilled worker, temporary/skilled worker, and temporary/unskilled worker. With controlling wage-determining factors such as education, labor union, individual fixed-effect, and industry-level effect, this paper examines whether OFDI attributes to the wage inequality among each type of workers. Moreover, this study also analyzes possible effects on wages that could vary according to the different characteristics of investments by classifying OFDI into two groups: OECD and non-OECD. The results reveal that OFDI makes certain differences according to skill-intensity and contract type in terms of influences on wages. It also shows that the effect of OFDI on wages is more subject to contract type than to skill-intensity. The classification of OFDI into OECD and non-OECD proves that effects on wages can vary by characteristics of the subject of investment.

A study on the contributing factors of wage inequality in employment companies for persons with disabilities (장애인 고용기업체의 임금 격차 기여요인에 관한 연구)

  • Choi, Yun-Jung
    • Journal of the Korea Convergence Society
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    • v.11 no.7
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    • pp.207-216
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    • 2020
  • The purpose of this study is to analyze the factors contributing to the wage inequality between employment of persons with disabilities. Among the raw data provided by the Korea Employment Development institute for persons with disabilities, 3,546 cases were studied, excluding cases in which major variables were missing, in the 『2018 survey on the employment status of the disabled in business』. Data analysis was conducted using SPSS 25 and STATA 14 to analyze wage inequality among employment companies for persons with disabilities. Data analysis was conducted using SPSS 25 and STATA 14 to analyze wage inequality in employment companies for persons with disabilities. The study found that factors contributing to the wage inequality in employment companies for the disabled include 'minimum level of education'12.63%, 'asset level'6.37%, 'level of work required'4.87%, 'ratio of female employment'3.30%, 'sales profit'2.33%, 'education training for employees'1.19%, 'labor union membership rate'0.67%, 'work type'0.42%, 'average working hours'0.41%, 'recognition of work level of disabled people'0.34%, 'recognition that employment of disabled people is helpful to companies'0.23%, 'positive recognition of work cost of disabled people'0.17%. Based on these results, this study proposed access at the level of employment business for the disabled, social level, and worker level for the disabled.

Household Formation and Income Inequality (가구구성과 소득 불평등)

  • Kim, Dae Il;Lee, Simon Sokbae;Whang, Yoon-Jae
    • Journal of Labour Economics
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    • v.37 no.3
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    • pp.1-44
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    • 2014
  • This paper investigates the effect of household formation on the mapping from wage inequality to income inequality, which usually is smaller than the former. Added workers, income pooling among household members, and shared consumption are the factors that make income distribution less inequal than wage distribution, and the effect of income pooling appears to be the greatest. This suggests than the increase in nuclear families and the resulting increase of old families have a potential effect of worsening income inequality at the absence of sufficient private income transfers among the two households. A simple counter-factual estimate indicates that income pooling among the children's and parents' households can efficiently and sizeably reduce income inequality.

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