Testing the Labor Market Dualism in Korea

Abstract

The existence of the dual labor market in Korea is tested under the two different definitions of the labor market dualism. First, the estimation results from widely used tools such as Heckman’s sample selection model support the existence of two wage equations, advocating the presence of labor market dualism in Korea. Second, the labor market dualism index suggested by Hudson (2007) supports that there is some degree of bifurcation between the good job conditions and bad job conditions.