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Changes in the relative importance of the minimum wage, income support and employment support programs

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Frame of Image nd Employment Support Programs
Heesuk Yun, Senior Fellow at KDI
“Because there is a significant mismatch between low wage and low income, policies tackling the poverty issue must focus on low income households rather than low-wage workers and emphasize the EITC or labor market policies that support low income households rather than the role of the minimum wage system that supports low-wage workers.”
Rising by 7.3% from a year ago, the minimum wage for 2017 was fixed and announced at 6,470 won. Nonetheless, doubts over the effectiveness of the minimum wage program― noncompliance of the minimum wage requirement marked 6.2-11.5% in 2015―and the ambiguous division of roles among various support programs have continued to raise concerns regarding what the effective means of tackling poverty are in an ever-changing socioeconomic environment. Fundamentally, the relationship between wage and household income has become increasingly complicated as more women join the workforce and more part-time jobs become available; in the past, there was generally one full-time wage earner per household, meaning that increased wages translated directly into increased household income. Moreover, a considerably high proportion of low-paid workers are from middle-
KDI FOCUS
2
[Figure 1] Contributing Factors to Pay Gap led Household Income Gap and the Course
Difference in employment status & working hours Difference in other market income (capital income/private income transfer)
Individual pay gap (wor


Full Text
Title Changes in the relative importance of the minimum wage, income support and employment support programs
Similar Titles
Material Type Articles
Author(English)

Yun, Heesuk

Publisher

Sejong, South Korea:Korea Development Institute

Date 2016
Journal Title; Vol./Issue KDI Focus:no. 71
Pages 9
Subject Country South Korea(Asia and Pacific)
Language English
File Type Documents
Original Format pdf
Subject Social Development < Employment
Holding Korea Development Institute

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