Labor Input in Korea: 1963-2023

Abstract

This paper aims to achieve two objectives. First, it compiles consistent labor input statistics for Korea spanning 1963-2023, based on available statistics including the Economically Active Population Survey (EAPS), to evaluate six decades of labor input trends. Second, it estimates labor input's contribution to Korea's economic growth using the growth accounting framework, considering four indicators: (i) the number of workers, (ii) human capital index based on schooling years, (iii) weekly working hours, and (iv) labor efficiency as a function of weekly working hours. The total labor input grew annually by 5.1% during the first three decades but slowed to 0.9% in the next three, averaging 3.0% during 1963-2023. During the same period, real GDP grew at 7.0%, with labor input contributing 28.8% (2.0 percentage points). The respective contributions of the four indicators were 74.6%, 34.2%,-11.0%, and 2.2%. Finally, we obtained GDP and capital stock data and analyzed the sources of economic growth using conventional growth accounting methodology.

Keywords: labor statistics, long time-series, contribution to economic growth, growth accounting, Labor input

JEL Classification: J21, J24, O40