Wage inequality between skilled and less skilled workers is found to be affected negatively by the relative supply of skilled labor and positively by both the capital-to-GDP ratio and the ratio of exports of goods and services to GDP. A rise in trade openness and a shift toward a more skill-intensive production structure are expected to increase wage inequality as well as GDP. An increase in the supply of skilled workers since 1985 helped keep wage inequality stable. Raising the supply of skills and human capital via improvements in educational quality is necessary to slow or reverse the growth of wage inequality.
While the efficiency of skilled labor has risen since 1980, the efficiency of unskilled labor has not changed very much over this period. This reflected three factors: the complementary relationship between capital and skill, the worldwide development of skill-biased technological change, and the skill-intensive industrial structure in Korea. (The rest omitted)
Wage inequality and the efficiency of workers in Korea
[Seoul] : The Bank of Korea(Institute for Monetary and Economic Research)
|Series Title; No||Working Paper / no. 437|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Social Development < Employment|
|Holding||The Bank of Korea; KDI School|