The Determinant of Employment Decision on Foreign Workers (in Korean)

Fast growing on employment of foreign workers is a recent phenomenon in South Korea. However, there are only countable numbers of studies on the characteristics of firms that hire foreign workers and the effect of increase in foreign workers on native workers in South Korea. We examine the characteristics of firms that affect on the employment decision on foreign workers. Further, we examine the influence of the increase in employment of foreign workers on native temporary workers. The analysis shows that firms without labor union are less likely to employ foreign workers. Further, firms that hire more female workers, and use less numbers of computers are more likely to employment foreign workers. An additional analysis on manufacturing firms shows confirms above results. In addition, manufacturing firms that has incentive to reduce the labor cost is favorable to hire more foreign workers. We also analyze the relation between the labor demand on foreign workers and native temporary workers. The evidence implies that labor demand on foreign workers is not substitute to the labor demand on native temporary workers, but complement. The results confirm the previous studies on the effect of foreign workers on native workers in South Korea.