부산대학교 도서관

Foreign Book

Analysis of Pay Inequality and its Impacts on Growth, and Performance in Korean Industry / Yunhee Kim.

한국 산업의 지역별 소득불균형 분석과 산업의 성장 및 성과에 대한 영향력 연구

Seoul, Korea (South) : Science and Technology Policy Institute , 2007

iii, 31 p. ; 24 cm.

정책자료 ; 2007-10
정책자료(Science & Technology Policy Institute) ; 2007-10

This paper examines the relationship among pay inequality, economic growth and innovation in Korea. So we estimated pay inequality in Korea’s manufacturing sector using panel-level data for the period 1993 to 2003. The objective is to estimate pay inequality by using Theil’s index and to identify the factors determining pay inequality and find the relationship with economic growth and innovation. We first review changes in industrial trend, production, and investment patterns over the period and how those changes led to the creation of a relatively pay inequality between and within regions and sectors. We then compare annual changes in manufacturing pay inequality and annual GDP growth, finding that the previously stable, negative relationship predicted by Kuznets broke down at the height of the period of structural reform in Korea, giving way to a positive relationship after 1998. On the basis of Theil’s T statistics, results shows a positive relationship between firms’pay inequality and size, location, R&D intensity, export, diversification and business sectors. The relation holds even when we control individual, time period and firm characteristics. The decom- posability property of the Theil index enables us to show that manufacturing pay inequality in Korea has risen both across sectors and regions, though more strongly across industrial sectors. Despite controlling for changes in the level of real per capita income, the rise in inequality accelerates in the period following the introduction of reforms. It appears that a large part of rising pay inequality can be attributed to rising relative pay in the ICT sector. The findings support the hypothesis of an “augmented” Kuznets Curve according to which some developed countries are found on an upward-sloping addendum to Kuznets’ original formulation.

338.951 K49aA