The Korean Journal of Economic Studies
The Industry-Level Mismatch Unemployment in Korea
Jiwoon Kim (Hongik University)Year 2020Vol. 68No. 3
AbstractThis study quantifies the contribution of the industry-level mismatch unemployment to the increase in the unemployment rate during 2013-2018(0.75%p) by using Sahin et al. (2014)’s methodology. Industry-level mismatch unemployment refers to the unemployment that occurs when job seekers’ movements across industries are hampered by labor market frictions such as wage rigidity, lack of information, skill mismatch, etc. According to the analysis, industry-level mismatch accounts for 23.6% of the observed increase in the unemployment rate during 2013-2018.