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Do Unions Inhibit Labor Flexibility? Lessons form Korea

Lee, Ju-Jo / Moh, Young-Kyu / Kim, Dea-Il

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Abstract

We examine whether and to what extent unions inhibit labor flexibility in the Korean manufacturing. We provide evidence that the short-run employment and hours adjustment of manufacturing regular workers decrease in the post-1987 period with the abrupt incidence of unleashing active unionism in 1987. However, negative union effects on employment adjustment are limited to male, production, and regular workers. We also note that significant part of the decrease in employment flexibility is attributed to the labor market changes toward tighter labor market with the reduced young workers.

Issue Date
2002
Publisher
한국경제연구학회
Keywords(Author)
Labor Flexibility; Labor Adjustment; Labor Unions
URL
http://www.akes.or.kr/wp-content/uploads/2018/03/3-2-2.pdf
Journal Title
Korea and the World Economy
Start Page
231
End Page
256
ISSN
1598-2750
Language
English
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