Using data from the Supplement of the Economically Active Population Survey, this paper examines the driving factors behind the recent changes in wage inequality in Korea between 2001 and 2007. Particular focus is on two major issues in wage distributions during the past decade: widening wage gaps among firms of different sizes as well as employment arrangements. Wage inequality has continuously increased in almost all subgroups divided by employment arrangement and establishment size, as well as for paid employment since 2001. The results show that the wage differential between regular and non-regular workers largely overlaps with the wage differential among firms of different sizes, and the latter is a more important factor as compared with the former in explaining the recent rise in wage inequality.
Ⅰ. Introduction
II. Definitions and Measurement ofNon-regular Employment in Korea
III. Data and Major Trends in Wage Inequality
IV. Empirical Analysis of Recent Change inWage Inequality
V. Measuring the Impacts of Equal Wage onWage Distribution
VI. Concluding Remarks
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