Why are low-quality jobs created at SMEs? It is because the large companies hand over labor-intensive production to lower-level companies, causing exponential creation of new businesses amongst the lowest-paying bracket.
- Large firms have transferred a portion of their production process to lower-level companies in order to boost their price competitiveness.
- Because the jobs created at SMEs today are found in low-level companies, such as those with 5-19 employees, the quality of employment of SMEs as a whole is inevitably low.
- The rate of increase in per capita value-added for large firms was made possible by a steep decline in the rate of increase for employment.
- After the Asian Financial Crisis, SMEs began to catch up with large firms in terms of the rate of increase in R&D investment. (The rest omitted)
Promoting good-quality job creation in the sector of SMEs
Sejong-si : Korea Development Institute
|Series Title; No||KDI Focus / 29|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Industry and Technology < General
Social Development < Employment
|Holding||KDI; KDI School|