The Korean Journal of Economic Studies
How Do Minimum Wage Hikes Affect Workers in Korea?
Yunjeong Kwon (Pusan National University) and Chae-Deug Yi (Pusan National University)Year 2020Vol. 68No. 1
We analyzed the impact of the minimum wage hikes on workers dependingon their income level, routine intensiveness of their works, and sex. Usingdata from OECD PIAAC, we calculated the Routine Intensive Index(RII) anddivided workers for five different wage groups. The result of estimation usingdifferenced two-way fixed model shows that the employment of low wagegroups with high RII declined. Surprisingly, the most affected by theminimum wage hikes were high wage groups with low routine intensiveness.But the employment effect of the two high wage groups are shown oppositedirection. The group earning 325~400% higher than minimum wage showsincrease in employment while the top wage group decline.