본문 바로가기
  • Home

A Comparative Approach on the Wage Structure between the Korea and Japan: Estimation of Wage Profile

Seung Yeol Yee 1

1한국노동연구원

Accredited

ABSTRACT

This paper tries to understand the changes in the Korean and Japanese wage structure since 2000, of which the seniority system is characteristic. We estimated the wage profile using the wage survey data by the two governments in the years of 2000 and 2007. The results are as follow:First, the seniority system doesn't be extinct in the two countries during our period of observation. Both Korea and Japan have the wage systems in which the wages are rising to 40 years old, and going down from then on. Second, comparing between the estimation results in 2007 and the ones in 2000 in Korea, the tenure effect is positive to the workers who stay at the same employer during 30 years or more. This result says that the seniority system is more stable in the Korea labor market. Third, the estimated tenure effects are directly opposed between Korea and Japan. The slope of the wage profile has been flatter since 2000 in the Japanese wage structure. We infer from our estimation results that the seniority system has been being strengthening in the Korean labor market, but has been being weekened in the Japanese labor market with the increasing similarity between the Korean wage structure and the Japanese one.

Citation status

* References for papers published after 2022 are currently being built.