Abstract
This study examines empirically whether the wage increase rate of the union sector is lower than that of the-non-union sector in the mid-2000s in Korea, and why. I adopt the generalized Nash bargaining model. The results of this study indicate that the wage increase rate of the union sector is really lower than that of the-non-union sector in 2007, but not in 2005. It is also indicated that employment adjustment has a weak negative effect on wage increase rate only in 2007, and that employment adjustment is likely to act as a mediator between trade union and wage increase rate. On the other hand, one-year lagged operating income per capita has positive effects on wage increase rate both in 2005 and 2007, but it is not supported as a mediator. Trade union characteristics such as unionization rate, strike, and types of federation affiliated do not have significantly positive effects on wage increase rate, and some of them have rather negative effects. The rates of the non-union sector, independent unions, and KFTU are higher in 2007 as compared to 2005, and the softer trend may affect the negative effect of trade union on wage increase rate. Finally the interpretation and implication of the study results for the Korean IR trends are discussed.
Translated title of the contribution | On Wage Bargaining Outcomes in the Mid-2000s |
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Original language | Korean |
Pages (from-to) | 103-130 |
Number of pages | 28 |
Journal | 노동정책연구 |
Volume | 11 |
Issue number | 1 |
DOIs | |
State | Published - Mar 2011 |