How Industrial Structure Shifts Cause Worker Reallocation under Vertical Sorting in the Labor Market

Historically, the industrial structure of any given economy has exhibited fluctuations over the long term. However, there is evidence that contemporary industrial change is increasingly influenced by a complex array of factors. These include changes to the nature of the production process, which itself is linked to the trajectory of economic growth and the industrial maturity of an economy, as well as variations in the quality and quantity of labor and the evolution of mass consumption patterns driven by shifting demo­graphics and modern lifestyles. In addition, glo­balization and divergent stages of national eco­nomic development across the world influence the shape of global value chains and the export landscape, and together these phenomena exert a profound impact on the industrial foundation of a national economy. The advent of significant megatrends, digitalization, and a shift towards carbon-neutral production, has accelerated ongoing socioeco­nomic transformations unfolding globally, thereby reshaping industries at an unprecedented pace. In this paper, I explore how industrial change affects the labor market in Korea and relevant policies. Thank you for reading this abstract of a paper by the Korea Institute for Industrial Economics and Trade! We are South Korea's premier think tank studying the nexus where trade and industry intersect. http://www.kiet.re.kr/en https://www.ssrn.com/index.cfm/en/korea-inst-industrial-econ-trade-res/