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Structural change, employment and income distribution : the case of Korea 1960-1970

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  • Structural change, employment and income distribution
  • Kim, Daemo; Rice University
  • United States Agency for International Development


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Title Structural change, employment and income distribution
Similar Titles
Sub Title

the case of Korea 1960-1970

Material Type Reports
Author(English)

Kim, Daemo; Rice University

Publisher

[Washington, D.C.]:United States Agency for International Development

Date 1978
Series Title; No Other USAID Supported Study, Document ; Program of development studies paper / 85
Pages 42
Subject Country South Korea(Asia and Pacific)
Language English
File Type Link
Subject Economy < Macroeconomics
Social Development < Employment
Holding United States Agency for International Development

Abstract

Analyzes changes in the distribution of income in Korea between 1960 and 1970 in terms of changes in the structure of demand, output, and employment. The study is confined to agriculture, mining, and manufacturing -- comprising roughly 65% of the work force during the 1960's. The data were analyzed in two steps: first the factors contributing to the change in the output structure were quantitatively identified; then the results of the first step are linked with the changes in patterns of employment and income distribution. Income inequality increased among industrial workers but decreased among farmers; combining the two groups on a countrywide basis, inequality increased. Changes in the structures of domestic demand were found to be the most unequalizing factor, and rapid industrialization led to a larger increase in the employment of the relatively higher paid industrial workers than that of farmers. The faster growth of heavy industries using higher paid skilled workers increase the inequality among industrial workers. Export expansion tended to narrow income inequality among industrial workers but increased inequality among all households, while import substitution tended to equalize countrywide distribution.