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Job reallocation in Korean manufacturing: 1984–2014

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  • Lee, Changkeun
  • Won, Cheongyeon

Abstract

This paper investigates the patterns of job reallocation in Korean manufacturing during the period 1984–2014. Utilizing establishment-level data from the Mining and Manufacturing Survey, we construct job flow measures and document the trend of job reallocation and test its efficiency. We first find that the pace of job reallocation has diminished since the Asian Financial Crisis. Although jobs were reallocated from less productive to more productive establishments overall, we find that the productivity-enhancing effect has also diminished over time. Although recessions are known to be periods of intense reallocation and restructuring, job reallocation was not particularly more efficient during recessions in Korea. It even decreased during the Great Recession of 2008 because the exit probability of low-TFP establishments was reduced.

Suggested Citation

  • Lee, Changkeun & Won, Cheongyeon, 2021. "Job reallocation in Korean manufacturing: 1984–2014," Journal of Asian Economics, Elsevier, vol. 74(C).
    • Handle: RePEc:eee:asieco:v:74:y:2021:i:c:s1049007821000245
    DOI: 10.1016/j.asieco.2021.101295
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    References listed on IDEAS

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    Cited by:

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    More about this item

    Keywords

    Job reallocation; Productivity; Korea; Job flow; Great Recession; Asian Financial Crisis;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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