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Low Investment in Contingent Workers and its Negative Impact on Society: The Case of South Korea

Heung-Jun Jung, Yoon-Ho Kim and Heesang Yoon

A chapter in Advances in the Economic Analysis of Participatory & Labor-Managed Firms, 2015, vol. 16, pp 173-198 from Emerald Publishing Ltd

Abstract: Abstract Using two nationally representative data sets, we examine the wages, benefits, and social insurance of contingent workers compared with standard employees in South Korea. In addition, we measure employers’ investments in their contingent workforce. Our results indicate that contingent workers have become the dominant form of labor in South Korea after the 1998 Asian financial crisis and are faced with working conditions that are discriminative compared with those of standard employees. We also find that employers’ investments in contingent workers as human resources, as well as the upward mobility of contingent workers, are limited in the Korean labor market. Overall, our findings provide a comprehensive understanding of the working poor, including the social exclusion of contingent workers in an advanced developing economy.

Keywords: Korea; contingent workforce; involvement; inequality; globalization; J82; M54 (search for similar items in EconPapers)
Date: 2015
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