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Youth Labor Market Analysis
Youth Labor Market Analysis
  • Topic Labor Market & Employment Policies
  • Author Byung-Hee Lee
  • Language Korean
  • Publication Date February 28, 2003
  • Length 151 Pages
  • Publisher Korea Labor Institute
  • Download1 Youth Labor Market Analysis.pdf Youth Labor Market Analysis.pdf
    This study analyzes why emerging youth labor market problems happen. In order to
    answer, integrated analyses are undertaken with regard to the demand of youth labor and
    the school-to-labor-market transition process.

    On the one hand, the shortage of youth jobs is caused by the changes in the demand of
    youth labor First, large companies have cut down on the jobs for young people and
    preferred to hire experienced workers since the late 1997 economic crisis. But an in-depth
    analysis shows that the higher the job creation rate in businesses, the higher the
    recruitment of youths, which suggests active policies are required to create more jobs for
    the youth.

    Second, start-up businesses have created many jobs after economic crisis as have small
    businesses and service industries. Such trends indicate that, under the current
    situation in which large companies are limited in creating jobs, there is the need to support
    entrepreneurial activities by encouraging start-ups and nurturing youth-friendly knowledge-
    based industries.

    Third, empirical analysis shows that work experiences in school are effective in getting the
    first job quickly but they have no bearing on getting a higher first wage. This finding implies
    that work experience programs should be linked to education and major in order to
    strengthen work-based learning.

    On the other hand, high level of out-of-school joblessness in youth labor market is
    attributed to the difficulties and unstableness of school-to-work transition process.

    First, Korean youths enter the labor market later than those of other advanced nations,
    which is explained not only by higher level of education but also by the longer out-of-
    school joblessness in Korea. Therefore, the labor force participation rate of is low and a
    large part of youth labor force remains idle from not being employed in Korea. Second,
    according to empirical estimation, the longer transition period(non-employment period to
    get first job), the less the likelihood to get first job(negative duration dependence effect).
    And the longer it takes for young people to find their first job, the less likely it is for them to
    get stable career jobs.

    Third, even after they find the first job, the youths are subject to frequent turnover, unstable
    employment and drastic career changes. Accumulation of such unstable labor market
    experiences while young people attempt to settle in the labor market undermines the
    accumulation of human resources and thus negatively impacts their subsequent labor
    market consequences.

    These findings about school-to-work transition process suggest that it is necessary to
    implement education reform policies that strengthen the link between schools and the labor
    market to prevent youth joblessness in advance.
Byung-Hee Lee's other publications : 26
{Research Series} posts
No Title Author Date Attach
26 The Labor Market System and Wage Inequality Byung-hee Lee December 28, 2018 The Labor Market System and Wage Inequality
25 Labor Market System and Economic Inequality Byung-Hee Lee, Si-Kyun Lee, Sang-Bong Oh December 29, 2017 Labor Market System and Economic Inequality
24 Social Protection for the Self-Employed Byung-Hee Lee, Charnim Park, Sang-Bong Oh, Byung Koo Kang, Sook Kyung Kim December 30, 2016 Social Protection for the Self-Employed
23 Byung-Hee Lee(Senior Research Fellow, KLI) October 25, 2016
22 Economic Inequality: Status and Policy Measures Byung-Hee Lee, Byung-Gu Kang, Jaemin Seong, Minki Hong December 30, 2015 Economic Inequality: Status and Policy Measures