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Effects of Initial Labor Market Conditions on Job Polarization: Evidence from South Korea

Author

Listed:
  • Youngsoon Kwon

    (Yonsei University)

  • Myungkyu Shim

    (Yonsei University)

  • Hee-Seung Yang

    (Yonsei University)

Abstract

This paper investigates the extent to which initial conditions in the labor market influence the progress of job polarization in Korea. In particular, we compare the following two competing hypotheses: a specialization hypothesis and an inter-industry wage differentials hypothesis. Our findings indicate that job polarization is pronounced in industries that have historically relied on routine tasks and have experienced a significant increase in ICT capital intensity between 2000 and 2019. By contrast, initial inter-industry wage differentials are not associated with job polarization in Korea during the same period.

Suggested Citation

  • Youngsoon Kwon & Myungkyu Shim & Hee-Seung Yang, 2024. "Effects of Initial Labor Market Conditions on Job Polarization: Evidence from South Korea," Korean Economic Review, Korean Economic Association, vol. 40, pages 219-253.
    • Handle: RePEc:kea:keappr:ker-20240701-40-2-01
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    References listed on IDEAS

    as
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    6. Acemoglu, Daron & Autor, David, 2011. "Skills, Tasks and Technologies: Implications for Employment and Earnings," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 12, pages 1043-1171, Elsevier.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Job Polarization; Initial Conditions; Routine Worker; Industry Wage Premium; ICT Capital; Korea;
    All these keywords.

    JEL classification:

    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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