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Employment Effects Of Low-Skilled Immigrants In Korea

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  • JUNGHO KIM

    (Ajou University, Korea & IZA, Germany)

Abstract

This study examines the impact of inflows of foreign workers on Korean natives¡¯ employment through the Employment Permit System, the basis of Korea¡¯s system by which low-skilled immigrants are introduced. Using National Employment Insurance data, analyses reveal that the adjustment cost related to the introduction of foreign workers was not substantial over the 2004-2005 period. However, a substitution effect exists between the employment of foreign and native workers in the service industry and among less-educated natives. The results suggest that policy assistance is needed to lessen the impacts caused by inflows of foreign workers on a sector-by-sector basis.

Suggested Citation

  • Jungho Kim, 2014. "Employment Effects Of Low-Skilled Immigrants In Korea," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 39(2), pages 25-49, June.
    • Handle: RePEc:jed:journl:v:39:y:2014:i:2:p:25-49
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    References listed on IDEAS

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    More about this item

    Keywords

    Employment Permit System; Low-Skilled Immigrants; Employment of Natives; Adjustment Costs;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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