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A comparative analysis of inter-industry wage differentials: before and after the Korean financial crisis

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  • Yujin Oh
  • Sung-Joon Park
  • Yu-Seop Kim

Abstract

Korean economy has changed rapidly since the 1997 Korean financial crisis. This article investigates whether the inter-industry wage differentials in the Korean manufacturing industry are consistent over time and how the inter-industry wage structure has changed after the financial crisis. We used the 1995 and 1999 survey report on the wage structure-Korea. Our empirical results provide evidences for a wider inter-industry wage differentials and changes of the wage structure. After the crisis, company size, region (live in capital), sex, tenure, education are more critical to determine wages. According to factor analysis, the job quality factor is most closely related to wages before the crisis, while the industry attributes factor does in 1999.

Suggested Citation

  • Yujin Oh & Sung-Joon Park & Yu-Seop Kim, 2007. "A comparative analysis of inter-industry wage differentials: before and after the Korean financial crisis," Applied Economics, Taylor & Francis Journals, vol. 39(11), pages 1387-1397.
    • Handle: RePEc:taf:applec:v:39:y:2007:i:11:p:1387-1397
    DOI: 10.1080/00036840600606286
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    1. Kam-Ki Tang & Yi-Ping Tseng, 2004. "Industry-specific human capital, knowledge labour, and industry wage structure in Taiwan," Applied Economics, Taylor & Francis Journals, vol. 36(2), pages 155-164.
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    3. Robert Gibbons & Lawrence Katz, 1992. "Does Unmeasured Ability Explain Inter-Industry Wage Differentials?," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 59(3), pages 515-535.
    4. Erkan Erdil & I. Hakan Yetkiner, 2001. "A comparative analysis of inter-industry wage differentials: industrialized versus developing countries," Applied Economics, Taylor & Francis Journals, vol. 33(13), pages 1639-1648.
    5. Benito, Andrew, 2000. "Inter-industry Wage Differentials in Great Britain," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 62(0), pages 727-746, Special I.
    6. Alan Carruth & William Collier & Andy Dickerson, 2004. "Inter‐industry Wage Differences and Individual Heterogeneity," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 66(5), pages 811-846, December.
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    Cited by:

    1. Mehta, Aashish & Hasan, Rana, 2012. "The effects of trade and services liberalization on wage inequality in India," International Review of Economics & Finance, Elsevier, vol. 23(C), pages 75-90.

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