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Employment Effects of Low-Skilled Immigrants in Korea

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  • Kim, Jungho

    (Ajou University)

Abstract

This study examines the impact of inflows of foreign workers on Korean natives' economic performance – namely, employment – through the Employment Permit System, the basis of Korea's system by which to introduce low-skilled immigrants. Using National Employment Insurance data, analyses reveal that the adjustment cost related to the introduction of foreign workers was not substantial over the 2004-2005 period. However, a substitution effect exists between the employment of foreign and native workers in the service industry and among less-educated natives. The results suggest that policy assistance is needed to lessen the impacts caused by inflows of foreign workers and to enhance adjustments within the labor market on a sector-by-sector basis.

Suggested Citation

  • Kim, Jungho, 2013. "Employment Effects of Low-Skilled Immigrants in Korea," IZA Discussion Papers 7287, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp7287
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    References listed on IDEAS

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    More about this item

    Keywords

    employment permit system; low-skilled immigrants; employment of natives; adjustment costs;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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