Contents

Wage Inequality Dynamics and Trade Exposure in South Korea

Karacaovali, B. / Tabakis, C.

Abstract

South Korea has experienced a great U-turn in its inequality trends during the past few decades. In this paper, we explore the role of international trade in its wage inequality dynamics over the 1998–2012 period, using a unique household panel survey. Our analysis reveals that most of the overall wage inequality occurs within sectors and educational groups rather than between them. However, the share in total inequality of the “between” variation across sectors and educational groups has moderately increased over time. Furthermore, we document that almost the entire aggregate wage inequality in both manufacturing and services occurs within different trade-exposure categories rather than between them, and this pattern is persistent through time. These results suggest that international trade might not be the main driving force behind the rising wage dispersion in South Korea in the last two decades.

Issue Date
2017
Publisher
Elsevier B.V.
Keywords
Wage inequality; Trade exposure; South Korea
Citation
Journal of Asian Economics, v.48, pp.48 - 65, 2017
DOI
10.1016/j.asieco.2016.11.004
Journal Title
Journal of Asian Economics
Start Page
48
End Page
65
ISSN
1049-0078
Language
English
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