Dualism in Job Stability of the Korean Labour Market: The Impact of the 1997 Financial Crisis

Abstract

This paper measures the dynamic changes in job stability in the Korean labour market during the period between the 1997 financial crisis and the recovery. Drawing on the Korean Labor and Income Panel Study data, our empirical research shows that the sharp decline in job stability experienced by Korean workers during the 1997 financial crisis never bounced back to the previous level. The recovery process was much slower for irregular, short-tenured or less educated workers than the other comparison groups, aggravating the polarization of job stability.