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Effects of Increasing Non-regular Workers on Wage Distribution (in Korean)

Author

Listed:
  • Chung Choe

    (Division of Economics, Hanyang University (ERICA))

  • Sungyup Chung

    (Research Department, The Bank of Korea)

Abstract

This paper examines the effects of the expansion of non-standard work arrangements on the distribution of wage income. Specifically, we quantitatively estimate the effects of the increased proportion of non-regular workers among wage earners on each income quantile and subsequent changes in Gini coefficient by using the Recentered Influence Function (Firpo et al., 2009). According to the analysis on 2014 survey on the working conditions, the increase in non-regular workers negatively influence income inequality in Korea. It turns out that the rise in non-standard work arrangement aggravates overall income inequality not only by lowering the wages of low-wage workers, but also by improving the wages of high-wage workers.

Suggested Citation

  • Chung Choe & Sungyup Chung, 2017. "Effects of Increasing Non-regular Workers on Wage Distribution (in Korean)," Economic Analysis (Quarterly), Economic Research Institute, Bank of Korea, vol. 23(1), pages 1-22, March.
    • Handle: RePEc:bok:journl:v:23:y:2017:i:1:p:1-22
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    More about this item

    Keywords

    Non-standard work arrangement; Wage differentials; RIF regression; Unconditional quantile regression;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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