Crisis and reforms in Korea's labour market

Abstract

The economic crisis has a marked impact on the Korean labour market. On the one hand, the market outcomes such as employment and wages (both nominal and real) have shown a substantial decline. On the other, strong voices have been raised for introducing labour market reforms aimed at reinforcing market discipline. The needs for flexible employment adjustment and cooperative industrial relations have been given emphasis. This paper documents the recent labour market developments, and discusses the related labour market issues. It also discusses the policy issues and the government response during recent few years.