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Strategies for Reforming Korea's Labor Market to Foster Growth

Author

Listed:
  • Mai Dao

    (International Monetary Fund)

  • Davide Furceri

    (International Monetary Fund)

  • Jisoo Hwang

    (Hankuk University of Foreign Studies)

  • Meeyeon Kim

    (The Bank of Korea)

  • Tae-Jeong Kim

    (The Bank of Korea)

Abstract

While the Korean unemployment rates are currently among the lowest in OECD countries, the labor market duality and the underemployment in some segments of the population are important labor market challenges, and factors contributing to lower potential growth. The paper shows the benefits of comprehensive policy reforms aimed at increasing labor force participation and youth employment and reducing duality are likely to be considerable in the medium term.

Suggested Citation

  • Mai Dao & Davide Furceri & Jisoo Hwang & Meeyeon Kim & Tae-Jeong Kim, 2014. "Strategies for Reforming Korea's Labor Market to Foster Growth," Working Papers 2014-25, Economic Research Institute, Bank of Korea.
    • Handle: RePEc:bok:wpaper:1425
    as

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    References listed on IDEAS

    as
    1. Randall S. Jones & Satoshi Urasawa, 2013. "Labour Market Policies to Promote Growth and Social Cohesion in Korea," OECD Economics Department Working Papers 1068, OECD Publishing.
    2. Juan J. Dolado & Salvador Ortigueira & Rodolfo Stucchi, 2016. "Does dual employment protection affect TFP? Evidence from Spanish manufacturing firms," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 7(4), pages 421-459, November.
    3. Isabell Koske & Jean-Marc Fournier & Isabelle Wanner, 2012. "Less Income Inequality and More Growth – Are They Compatible? Part 2. The Distribution of Labour Income," OECD Economics Department Working Papers 925, OECD Publishing.
    4. David H. Autor & Frank Levy & Richard J. Murnane, 2003. "The skill content of recent technological change: an empirical exploration," Proceedings, Federal Reserve Bank of San Francisco, issue Nov.
    5. Luca Nunziata & Stefano Staffolani, 2007. "Short‐Term Contracts Regulations And Dynamic Labour Demand: Theory And Evidence," Scottish Journal of Political Economy, Scottish Economic Society, vol. 54(1), pages 72-104, February.
    6. Damiani, Mirella & Pompei, Fabrizio & Ricci, Andrea, 2011. "Temporary job protection and productivity growth in EU economies," MPRA Paper 29698, University Library of Munich, Germany.
    7. Ms. Chie Aoyagi & Mr. Giovanni Ganelli, 2013. "The Path to Higher Growth: Does Revamping Japan’s Dual Labor Market Matter?," IMF Working Papers 2013/202, International Monetary Fund.
    8. Davide Furceri & Mr. Lorenzo E. Bernal-Verdugo & Mr. Dominique M. Guillaume, 2012. "Crises, Labor Market Policy, and Unemployment," IMF Working Papers 2012/065, International Monetary Fund.
    9. Isabell Koske & Jean-Marc Fournier & Isabelle Wanner, 2014. "The Distribution Of Labor Income," World Scientific Book Chapters, in: Peter Hoeller & Isabelle Joumard & Isabell Koske (ed.), Income Inequality in OECD Countries What are the Drivers and Policy Options?, chapter 3, pages 43-84, World Scientific Publishing Co. Pte. Ltd..
    10. Ms. Sonali Jain-Chandra & Ms. Longmei Zhang, 2014. "How can Korea Boost Potential Output to Ensure Continued Income Convergence?," IMF Working Papers 2014/054, International Monetary Fund.
    11. Ms. Florence Jaumotte, 2011. "The Spanish Labor Market in a Cross-Country Perspective," IMF Working Papers 2011/011, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Grigoli, Francesco & Koczan, Zsoka & Topalova, Petia, 2020. "Automation and labor force participation in advanced economies: Macro and micro evidence," European Economic Review, Elsevier, vol. 126(C).
    2. Johanna Schauer, 2018. "Labor Market Duality in Korea," IMF Working Papers 2018/126, International Monetary Fund.
    3. Mr. Francesco Grigoli & Zsoka Koczan & Petia Topalova, 2018. "Drivers of Labor Force Participation in Advanced Economies: Macro and Micro Evidence," IMF Working Papers 2018/150, International Monetary Fund.
    4. Sonali Jain-Chandra & Tidiane Kinda & Kalpana Kochhar & Shi Piao & Johanna Schauer, 2019. "Sharing the Growth Dividend: Analysis of Inequality in Asia," Journal of Banking and Financial Economics, University of Warsaw, Faculty of Management, vol. 2(12), pages 5-28, September.
    5. Lone Engbo Christiansen & Ms. Huidan Huidan Lin & Ms. Joana Pereira & Petia Topalova & Ms. Rima A Turk, 2016. "Individual Choice or Policies? Drivers of Female Employment in Europe," IMF Working Papers 2016/049, International Monetary Fund.
    6. Raihan, Selim, 2021. "Functional Income Distribution and Inequality in the Asia-Pacific Countries," MPRA Paper 110469, University Library of Munich, Germany.

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    More about this item

    Keywords

    labor market duality; female labor force participations; youth employment; reforms;
    All these keywords.

    JEL classification:

    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies

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