Employment Effects of Low-Skilled Immigrants in Korea

Jungho Kim

No 7287, IZA Discussion Papers from Institute of Labor Economics (IZA)

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.

Keywords: employment permit system; low-skilled immigrants; employment of natives; adjustment costs (search for similar items in EconPapers)
JEL-codes: F22 J61 J63 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2013-03
New Economics Papers: this item is included in nep-lab and nep-mig
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Related works:
Journal Article: EMPLOYMENT EFFECTS OF LOW-SKILLED IMMIGRANTS IN KOREA (2014)
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