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Testing the Labor Market Dualism in Korea

Author

Listed:
  • Sungyup Chung

    (Macroeconomics Team, Economic Research Institute, The Bank of Korea)

  • Sunyoung Jung

    (Macroeconomics Team, Economic Research Institute, The Bank of Korea)

Abstract

The existence of the dual labor market in Korea is tested under the two different definitions of the labor market dualism. First, the estimation results from widely used tools such as Heckman's sample selection model support the existence of two wage equations, advocating the presence of labor market dualism in Korea. Second, the labor market dualism index suggested by Hudson (2007) supports that there is some degree of bifurcation between the good job conditions and bad job conditions.

Suggested Citation

  • Sungyup Chung & Sunyoung Jung, 2016. "Testing the Labor Market Dualism in Korea," Working Papers 2016-13, Economic Research Institute, Bank of Korea.
    • Handle: RePEc:bok:wpaper:1613
    as

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    File URL: http://papers.bok.or.kr/RePEc_attach/wpaper/english/wp-2016-13.pdf
    File Function: Working Paper, 2016
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    References listed on IDEAS

    as
    1. James J. Heckman & V. Joseph Hotz, 1986. "An Investigation of the Labor Market Earnings of Panamanian Males Evaluating the Sources of Inequality," Journal of Human Resources, University of Wisconsin Press, vol. 21(4), pages 507-542.
    2. Krueger, Alan B & Summers, Lawrence H, 1988. "Efficiency Wages and the Inter-industry Wage Structure," Econometrica, Econometric Society, vol. 56(2), pages 259-293, March.
    3. Maarten Goos & Alan Manning & Anna Salomons, 2009. "Job Polarization in Europe," American Economic Review, American Economic Association, vol. 99(2), pages 58-63, May.
    4. David H. Autor & David Dorn, 2013. "The Growth of Low-Skill Service Jobs and the Polarization of the US Labor Market," American Economic Review, American Economic Association, vol. 103(5), pages 1553-1597, August.
    5. Bulow, Jeremy I & Summers, Lawrence H, 1986. "A Theory of Dual Labor Markets with Application to Industrial Policy,Discrimination, and Keynesian Unemployment," Journal of Labor Economics, University of Chicago Press, vol. 4(3), pages 376-414, July.
    6. David Grubb & Jae-Kap Lee & Peter Tergeist, 2007. "Addressing Labour Market Duality in Korea," OECD Social, Employment and Migration Working Papers 61, OECD Publishing.
    7. Dickens, William T & Lang, Kevin, 1985. "A Test of Dual Labor Market Theory," American Economic Review, American Economic Association, vol. 75(4), pages 792-805, September.
    8. William T. Dickens & Kevin Lang, 1985. "Testing Dual Labor Market Theory: A Reconsideration of the Evidence," NBER Working Papers 1670, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Myounghwan Kim & Giseung Kim, 2023. "Effect of Korean trade union on wage discrimination between regular and irregular workers," Asian Economic Journal, East Asian Economic Association, vol. 37(1), pages 3-24, March.
    2. Sungyup CHUNG, 2019. "The effect of labour market polarization on university students’ job market‐related outcomes in the Republic of Korea: Implications for youth unemployment," International Labour Review, International Labour Organization, vol. 158(3), pages 509-533, September.

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    More about this item

    Keywords

    Labor market; Labor market dualism; Sample bias correction;
    All these keywords.

    JEL classification:

    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General
    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions

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