콘텐츠 바로가기
로그인
컨텐츠

Category Open

Resources

tutorial

Collection of research papers and materials on development issues

home

Resources
Economy General
Social Development Employment

Print

Wageless growth in Korea : Changes in real wage of workers by income level

Related Document
Frame of Image stopped increasing in 2008 across all industries, and remained stagnant for six years until Q2 2013 (See Figure 1). This is the longest period of suspended wage growth in the history of Korea since the development era of the 1960s and 1970s. Wages have been stalled despite a steady improvement in real labor productivity (Real GDP/ number of workers). This has resulted in a sluggish growth of household income, which is the greatest obstacle to stimulating domestic consumption. During the recent episode of “wageless growth”, changes in wage level have diverged across different
income brackets. Based on the Labor Panel Survey data between 1998 and 2010, workers were divided into 10 groups (Group 1 through Group 10) in the reverse order of income level, and each group’s annual growth of real wage and the contribution to growth of overall real wage were calculated (See Table 1 and Table 2). The analysis results indicate that the average real wage slid by 0.4% annually between 2008 and 2010, and the real wage actually fell for 40% of least-earning workers and the top 10% of most-earning workers. The drop in real wage was the greatest for Group 3 (-3.5% annually), followed by Group 10 (-3.0%) and Group 2 (-2.8%). Meanwhile, real wages of workers in Group 5 through Group 9 rose slightly. It is notable that the real wage of workers in Group 10 fell more sharply than other groups, as it was a broad perception that the global financial crisis hit lowincome class harder than middle-incom


Full Text
Title Wageless growth in Korea
Similar Titles
Sub Title

Changes in real wage of workers by income level

Material Type Reports
Author(English)

Park, Jongkyu

Publisher

Korea Institute of Finance

Date 2014-02
Journal Title; Vol./Issue KIF Weekly Financial Brief:14/5
Pages 2
Subject Country South Korea(Asia and Pacific)
Language English
File Type Documents
Original Format pdf
Subject Economy < General
Social Development < Employment
Holding Korea Institute of Finance