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International trade and within-sector wage inequality : The case of South Korea

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Frame of Image re grateful to the KDI School of Public Policy and Management for providing financial support.
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International Trade and Within-sector Wage Inequality: the Case of South Korea
Siwook Lee*
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This paper studies which factors contributed to the changes in wage inequality in Korean manufacturing over the last three decades. By adopting Akerman et al. (2013)’s decomposition method, we examine the relative importance of withinsector and between-sector wage variations in Korean manufacturing over the period of 1980-2012. Our analytic results confirm that within-sector wage variation explains the lion’s share of overall wage inequality. Taking such finding into account, we estimate the impacts of international trade, skilled-biased technological change and labor market conditions on within-sector wage inequality in Korea. Our estimation results suggest that there was a structural change in determinants of wage inequality before and after the mid-1990s. The influence of international trade mainly through heightened import competition on wage dispersion became relatively more conspicuous over the last two decades.
JEL Classification: F14, F16, J33, O33 Keywords: Wage Inequality, International Trade, FDI, Technological Change, Skill-intensity
Associate Professor, KDI School of Public Policy and Management, 263 Namsejong-ro, Sejong-si 30149, Korea, E-mail: siwookl@kdischool.ac.kr
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Trade, Technology and Within-sector Wage Inequality: the Case of South Korea
I. Introduction
Globalizatio


Full Text
Title International trade and within-sector wage inequality
Similar Titles
Sub Title

The case of South Korea

Material Type Theses
Author(English)

Lee,Siwook

Publisher

[Sejong], [South Korea] : KDI School of Public Policy and Management

Date 2016-10
Series Title; No KDI School working paper series / 16-14
Pages 36
Subject Country South Korea(Asia and Pacific)
Language English
File Type Documents
Original Format pdf
Subject Economy < Trade
Economy < Direct Investment
Holding KDI School of Public Policy and Management
License