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Regional labor flow and economic integration: The case of South and North Korea

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  • Woo Jung
  • Kyttack Hong

Abstract

This paper provides a conceptual framework for analyzing the labor movement between the two Koreas and its impact on the structure of industrial output in the South. In particular, the paper is concerned with the absorption pattern of the new labor supply from the North by the South. It also attempts to study the effects of the migrated workers on the wage rate and employment opportunities of the workers in the South. Three alternative approaches are introduced to this analysis. The first two utilizes the existing employment data that might suggest some clues to the future labor market behavior. The third method uses the input-output table to calculate the labor demand curve and generate the theoretical amount of additional demand for workers at the low wage level. Finally a simple general equilibrium model is constructed to check the macroeconomic consistency of the micro results. The analysis also provides theoretically plausible procedures for empirical application

Suggested Citation

  • Woo Jung & Kyttack Hong, 1998. "Regional labor flow and economic integration: The case of South and North Korea," Global Economic Review, Taylor & Francis Journals, vol. 27(1), pages 102-118.
    • Handle: RePEc:taf:glecrv:v:27:y:1998:i:1:p:102-118
    DOI: 10.1080/12265089808449728
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    References listed on IDEAS

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    1. Noland, Marcus & Robinson, Sherman & Scatasta, Monica, 1997. "Modeling economic reform in North Korea," Journal of Asian Economics, Elsevier, vol. 8(1), pages 15-38.
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