The Impact of Institutional Change on Compensating Wage Differentials for Accident Risk: South Korea, 1984-1990
Institutional change can lead to substantial changes in the size of compensating differentials for workplace accident risk. The South Korean labor market experienced two major institutional changes between 1984 and 1990. First, a relaxation of restrictions on Korean labor unions in 1987 led to a sharp jump in the extent of strike activity and bargaining rounds which was associated with a reduction in the size of compensating differences. Second, reform of Korean workers compensation in 1989 led to a substantial rise in benefits that also served to reduce the extent of compensating differentials. Copyright 1999 by Kluwer Academic Publishers
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