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Social Development Population
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Employment effects of low-skilled immigrants in Korea

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  • Employment effects of low-skilled immigrants in Korea
  • Kim, Jungho
  • IZA


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Title Employment effects of low-skilled immigrants in Korea
Similar Titles
Material Type Articles
Author(English)

Kim, Jungho

Publisher

[Bonn] : IZA

Date 2013-03
Series Title; No Discussion Paper / no. 7287
Pages 34
Subject Country South Korea(Asia and Pacific)
Language English
File Type Link
Original Format pdf
Subject Social Development < Population
Social Development < Employment
Holding IZA
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Abstract

This study examines the impact of inflows of foreign workers on Korean natives’ economic performance – namely, employment – through the Employment Permit System, the basis of Korea’s system by which to introduce low-skilled immigrants. Using National Employment Insurance data, analyses reveal that the adjustment cost related to the introduction of foreign workers was not substantial over the 2004-2005 period. However, a substitution effect exists between the employment of foreign and native workers in the service industry and among less-educated natives. The results suggest that policy assistance is needed to lessen the impacts caused by inflows of foreign workers and to enhance adjustments within the labor market on a sector-by-sector basis.