Contents

International Trade and Within-Sector Wage Inequality: The Case of South Korea

Lee, Si Wook

Abstract

This paper studies which factors contributed to the changes in wage inequality in Korean manufacturing over the last three decades. By adopting Akerman et al. (2013)’s decomposition method, we examine the relative importance of within-sector and between-sector wage variations in Korean manufacturing over the period of 1980–2012. Our analytic results confirm that within-sector wage variation explains the lion's share of overall wage inequality. Taking this finding into account, we estimate the impacts of international trade, skilled-biased technological change and labor market conditions on within-sector wage inequality in Korea. Our estimation results suggest that there was a structural change in determinants of wage inequality before and after the mid-1990s. The influence of international trade mainly through heightened import competition on wage dispersion became relatively more conspicuous over the last two decades. © 2016

Issue Date
2017
Publisher
Elsevier B.V.
Keywords
Wage inequality; International trade; Technological change; Skill-intensity
Citation
Journal of Asian Economics, v.48, pp.38 - 47, 2017
DOI
10.1016/j.asieco.2016.11.001
Journal Title
Journal of Asian Economics
Start Page
38
End Page
47
ISSN
1049-0078
Language
English
Files in This Item:
    There are no files associated with this item.

Click the button and follow the links to connect to the full text. (KDI CL members only)

qrcode

Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.