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Low Investment in Contingent Workers and its Negative Impact on Society: The Case of South Korea

In: Advances in the Economic Analysis of Participatory & Labor-Managed Firms

Author

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  • Heung-Jun Jung
  • Yoon-Ho Kim
  • Heesang Yoon

Abstract

Using two nationally representative data sets, we examine the wages, benefits, and social insurance of contingent workers compared with standard employees in South Korea. In addition, we measure employers’ investments in their contingent workforce. Our results indicate that contingent workers have become the dominant form of labor in South Korea after the 1998 Asian financial crisis and are faced with working conditions that are discriminative compared with those of standard employees. We also find that employers’ investments in contingent workers as human resources, as well as the upward mobility of contingent workers, are limited in the Korean labor market. Overall, our findings provide a comprehensive understanding of the working poor, including the social exclusion of contingent workers in an advanced developing economy.

Suggested Citation

  • Heung-Jun Jung & Yoon-Ho Kim & Heesang Yoon, 2015. "Low Investment in Contingent Workers and its Negative Impact on Society: The Case of South Korea," Advances in the Economic Analysis of Participatory & Labor-Managed Firms, in: Advances in the Economic Analysis of Participatory & Labor-Managed Firms, volume 16, pages 173-198, Emerald Group Publishing Limited.
  • Handle: RePEc:eme:aeapzz:s0885-333920150000016013
    DOI: 10.1108/S0885-333920150000016013
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    More about this item

    Keywords

    Korea; contingent workforce; involvement; inequality; globalization; J82; M54;
    All these keywords.

    JEL classification:

    • J82 - Labor and Demographic Economics - - Labor Standards - - - Labor Force Composition
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management

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