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Regional Ties And Discrimination: Political Change, Economic Crisis, And Job Displacements In South Korea, 1997–99

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  • Changhui KANG
  • Seungjoo LEE

Abstract

Probing into the incidence of job displacements during the 1997–99 recession period, this study offers theoretically grounded micro‐causal explanations for regional ties and regional discrimination in South Korea. Our statistical analysis reveals the significant impact of a worker's birth region (the basis of regional ties and discrimination) on the layoff process. Native Kyongsang workers are found to have faced higher rates of layoff in Seoul‐Kyongki regional firms than native Jolla workers during the recession period. The Kyongsang–Jolla layoff rate gap is mainly due to differential treatment rather than a difference in observable characteristics. The findings suggest that the problem of regional ties and regional discrimination is more deep‐rooted and widespread in South Korea than previously reported.

Suggested Citation

  • Changhui KANG & Seungjoo LEE, 2007. "Regional Ties And Discrimination: Political Change, Economic Crisis, And Job Displacements In South Korea, 1997–99," The Developing Economies, Institute of Developing Economies, vol. 45(1), pages 63-96, March.
    • Handle: RePEc:bla:deveco:v:45:y:2007:i:1:p:63-96
    DOI: 10.1111/j.1746-1049.2007.00030.x
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    References listed on IDEAS

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    Cited by:

    1. Sven Horak, 2018. "Join In or Opt Out? A Normative–Ethical Analysis of Affective Ties and Networks in South Korea," Journal of Business Ethics, Springer, vol. 149(1), pages 207-220, April.
    2. Young-Chul Kim & Glenn C. Loury, 2021. "Birds of a Feather: Life Cycle Social Externalities, Heterogeneous Beliefs, and Development Bias," Working Papers 2104, Nam Duck-Woo Economic Research Institute, Sogang University (Former Research Institute for Market Economy).

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