Labor Market Reforms, Temporary Workers and Wage Inequality

제목
Labor Market Reforms, Temporary Workers and Wage Inequality
저자

Kim, Hyeon-Kyeong; Peter Skott

발행연도
2016-05-31
발행기관
John Wiley & Sons Inc.
Series
Metroeconomica, vol. 67, no. 2, pp. 313 - 333
Journal Title
Metroeconomica
초록
Temporary workers make up a sizeable part of the labor force in many countries and typically receive wages that are significantly lower than their permanent counterparts. This paper uses an efficiency wage model to explain the wage gap between temporary and permanent workers. High-performing temporary workers may gain promotion to permanent status, and a high wage to permanent workers therefore serves a dual purpose: it affects the effort of both permanent and temporary workers. Applying the model to the Korean experience, we discuss the effects of the labor market reforms in 1988 on inequality.
ISSN
0026-1386
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