The real losers during times of economic crisis: evidence of the Korean gender pay gap

Purpose - The purpose of this study is to gain a better understanding of the employment figures in the labour market after the two Korean financial crises (1997 and 2008), focusing on the gender gap across different characteristics. Based on several data points, a general trend becomes evident whereby, as companies retrenched, they shifted the demographics of their employees to those perceived as most valuable, i.e. workers with university educations. However, when distinguished by gender, it is evident that their priorities changed. This discovery suggests that as the world faces another global health crisis (COVID-19) with its associated impact on organisational retrenchment, the gender gap in Korea could widen further. Design/methodology/approach - The analysis was conducted by applying a simple compounded average growth rate (CAGR) analysis to determine the impact of the two crises on employment by the educational level. Findings - A general trend becomes evident whereby, as companies retrenched, they shifted the demographics of their employees to those perceived as most valuable, i.e. workers with university educations. However, when distinguished by gender, it is evident that their priorities changed. Research limitations/implications - Secondary data were used for the analysis as data for unemployed, who had given up looking for work, were not available. Practical implications - Managers can use the findings when making decisions about laying-off staff during times of financial/economic crisis. Social implications - There is a perceived negative impact upon highly educated Korean women. Originality/value - The paper advances the pay gap literature by providing evidence from Korea. CAGR analysis has never been used previously in analysing the pattern of labour market data to reveal gender discrimination. With a global health crisis (COVID-19) with its associated impact on organisational retrenchment, the gender gap in Korea could widen further.