Search Results
Working Paper
The Economic Effects of a Rapid Increase in the Minimum Wage: Evidence from South Korea Experiments
South Korea raised the nationwide minimum wage substantially in 2018 and 2019, and the minimum wage rose from 53 percent of the median wage to 63 percent. While the minimum wage has been increasing steadily over decades, the rapid pace in 2018–19 was largely unexpected and driven by a sudden shift in the political environment. We study the economic effects of this minimum wage hike on employment, wages, and labor productivity using South Korean manufacturing firm data. To ensure that sector-specific factors do not drive our main results, we supplement our analysis with data sources covering ...
Working Paper
The Economic Effects of a Rapid Increase in the Minimum Wage: Evidence from South Korea Experiments
South Korea’s minimum wage rapidly rose from 53 percent of the median wage to 63 percent between 2017 and 2019. While the minimum wage has been increasing steadily over decades, the rapid pace in 2018-19 was largely unexpected and driven by a sudden shift in the political environment. We study the economic effects of this minimum wage hike on employment, wages, and labor productivity using South Korean manufacturing firm data, which comprehensively covers all manufacturing firms with 10 or more employees. We find a significant negative employment (3% decline in domestic employment) effect ...
Working Paper
The Economic Effects of a Rapid Increase in the Minimum Wage: Evidence from South Korean Experiments*
South Korea’s minimum wage rapidly rose from 53 percent of the median wage to 63 percent between 2017 and 2019. While the minimum wage has been increasing steadily over decades, the rapid pace in 2018-19 was largely unexpected and driven by a sudden shift in the political environment. We study the economic effects of this minimum wage hike on employment, wages, and labor productivity using South Korean manufacturing firm data. We find a significant negative employment (3% decline in domestic employment) effect of the minimum wage hike for 2018-19 compared with its modest increase in ...