Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/71715
Authors: 
Kim, Jungho
Year of Publication: 
2013
Series/Report no.: 
Discussion Paper Series, Forschungsinstitut zur Zukunft der Arbeit 7287
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.
Subjects: 
employment permit system
low-skilled immigrants
employment of natives
adjustment costs
JEL: 
F22
J61
J63
Document Type: 
Working Paper

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