Strategies for Reforming Korea's Labor Market to Foster Growth

Abstract

While the Korean unemployment rates are currently among the lowest in OECD countries, the labor market duality and the underemployment in some segments of the population are important labor market challenges, and factors contributing to lower potential growth. The paper shows the benefits of comprehensive policy reforms aimed at increasing labor force participation and youth employment and reducing duality are likely to be considerable in the medium term.

Keywords: Labor market reforms, Korea, Republic of, Labor markets, Women, Underemployment, Labor force participation, labor market duality, female labor force participations, youth employment, reforms, labor market, labor force, employment, unemployment, female labor force, female labor force participation, employment rates, unemployment rates, employment rate, employment protection, unemployment rate, labor force participations, female unemployment, youth unemployment, temporary workers, job creation, labor market distortions, labor market outcomes, labor market dualism, labor force participation rates, employment reforms, retraining, labor supply, employment protection legislation, labor demand, red

JEL Classification: D04, D78, J08