Minimum Wage Hike and Multinational Enterprises' Employment: Firm-Level Evidence from South Korea

• 발행기관: 세종대학교 경제통합연구소
• 저자명: Hoyong Jung Sunyoung Park
• 간행물 정보: 『Journal of Economic Integration』제39권 제1호, 42~54쪽, 전체 13쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2024.03.01

국문 초록

Abstract This study examines the impact of a consecutive double-digit hike in Korea's minimum wage from 2018 to 2019 after the impeachment of President Park Geun-hye as an exogenous shock on the employment of multinational enterprises (MNEs). Notably, this topic has received limited attention in extant literature. Using a firm-level dataset covering the period 2006-2020, we find that MNEs respond to increases in the minimum wage by reducing their total employment size, including both regular and temporary workers. Furthermore, the effects are heterogeneous and depend on the participation of international trade and strategic partnerships. Our findings indicate that the minimum wage policy can even lead to a decrease in high-quality jobs within high-productivity companies, underscoring the need to adjust the pace of such increases to mitigate their side effects on the labor market.

목차

I. Introduction

II. Study Background and Hypothesis Development

III. Empirical Design

V. Conclusion

키워드

minimum wage employment multinational enterprises South Korea