On using mandatory retirement to reduce workforce in korea
Since the financial crisis in 1998, many Korean corporations with low profitability and excessive liabilities cut operating costs. They had to deal with exorbitant wage increases that outpaced productivity and were generated by the traditional seniority-based wage system. The empirical analysis of this study suggests that those companies with many long tenure workers under the Japanese-style personnel management system are more likely to utilize mandatory retirement in order to adjust employment. Moreover, blue-collar jobs are more likely to be associated with mandatory retirement. This suggests that the labour unions may tacitly approve of this practice.
Volume (Year): 19 (2005)
Issue (Month): 2 ()
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References listed on IDEAS
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- Lazear, Edward P, 1979. "Why Is There Mandatory Retirement?," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1261-1284, December.
- Morley Gunderson & James E. Pesando, 1980. "Eliminating Mandatory Retirement: Economics and Human Rights," Canadian Public Policy, University of Toronto Press, vol. 6(2), pages 352-360, Spring.
- Chiang, Sin-Hwan, 1986. "Cost Savings, Wages and the Growth of the Firm," Economic Journal, Royal Economic Society, vol. 96(383), pages 798-807, September.