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Strategies for Reforming Korea’s Labor Market to Foster Growth

Author

Listed:
  • Mai Dao
  • Davide Furceri
  • Tae-Jeong Kim
  • Meeyeon Kim
  • Jisoo Hwang

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 & Tae-Jeong Kim & Meeyeon Kim & Jisoo Hwang, 2014. "Strategies for Reforming Korea’s Labor Market to Foster Growth," IMF Working Papers 2014/137, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2014/137
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    References listed on IDEAS

    as
    1. 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.
    2. Mirella Damiani & Fabrizio Pompei & Andrea Ricci, 2011. "Temporary job protection and productivity growth in EU economies," Quaderni del Dipartimento di Economia, Finanza e Statistica 87/2011, Università di Perugia, Dipartimento Economia.
    3. David H. Autor & Frank Levy & Richard J. Murnane, 2003. "The Skill Content of Recent Technological Change: An Empirical Exploration," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(4), pages 1279-1333.
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    5. 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.
    6. 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..
    7. 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.
    8. David H. Autor & Frank Levy & Richard J. Murnane, 2003. "The Skill Content of Recent Technological Change: An Empirical Exploration," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(4), pages 1279-1333.
    9. 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.
    10. Ms. Florence Jaumotte, 2011. "The Spanish Labor Market in a Cross-Country Perspective," IMF Working Papers 2011/011, International Monetary Fund.
    11. 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.
    12. 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.
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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. 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.
    5. 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.
    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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    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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