Labor Market Rigidity at Home and Multinational Corporations’ Flexible Task Reallocation Abroad

Labor Market Rigidity at Home and Multinational Corporations’ Flexible Task Reallocation Abroad

An unprecedented regime change following the 2017 presidential impeachment led to a dramatic shift to more rigid labor market policies in the Republic of Korea, represented by consecutive double-digit hikes in the minimum wage in the next two years...

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Bibliographic Details
Main Authors: Ahn, JaeBin, Choi, Jaerim, Chung, Sunghoon
Format: Working Paper
Language:English
en_US
Published: Washington, DC : World Bank 2022
Subjects:
LABOR MARKET RIGIDITY
MINIMUM WAGE
TASK REALLOCATION
MULTINATIONAL CORPORATIONS
MNC
FOREIGN AFFILIATES
EMPLOYMENT ADJUSTMENT
POLITICAL DEVELOPMENT
Online Access:http://documents.worldbank.org/curated/en/099558206292225157/IDU081e65d43046c7049fa09ee2063cd30a05a4b
http://hdl.handle.net/10986/37633
id okr-10986-37633
recordtype oai_dc
spelling okr-10986-376332022-07-06T05:10:38Z Labor Market Rigidity at Home and Multinational Corporations’ Flexible Task Reallocation Abroad Ahn, JaeBin Choi, Jaerim Chung, Sunghoon LABOR MARKET RIGIDITY MINIMUM WAGE TASK REALLOCATION MULTINATIONAL CORPORATIONS MNC FOREIGN AFFILIATES EMPLOYMENT ADJUSTMENT POLITICAL DEVELOPMENT An unprecedented regime change following the 2017 presidential impeachment led to a dramatic shift to more rigid labor market policies in the Republic of Korea, represented by consecutive double-digit hikes in the minimum wage in the next two years. Using a firm-level data set with detailed information about foreign affiliates for 2013~19, this paper assesses the employment consequences of stricter labor market regulations. The empirical evidence uncovers a relatively unexplored mechanism through which domestic labor market rigidity can potentially reduce domestic employment as multinational firms with flexible internal networks reallocate tasks across borders. 2022-07-05T20:33:54Z 2022-07-05T20:33:54Z 2022-06 Working Paper http://documents.worldbank.org/curated/en/099558206292225157/IDU081e65d43046c7049fa09ee2063cd30a05a4b http://hdl.handle.net/10986/37633 English en_US Policy Research Working Paper;10114 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank Washington, DC : World Bank Publications & Research Publications & Research :: Policy Research Working Paper East Asia and Pacific East Asia Korea, Republic of
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic LABOR MARKET RIGIDITY
MINIMUM WAGE
TASK REALLOCATION
MULTINATIONAL CORPORATIONS
MNC
FOREIGN AFFILIATES
EMPLOYMENT ADJUSTMENT
POLITICAL DEVELOPMENT
spellingShingle LABOR MARKET RIGIDITY
MINIMUM WAGE
TASK REALLOCATION
MULTINATIONAL CORPORATIONS
MNC
FOREIGN AFFILIATES
EMPLOYMENT ADJUSTMENT
POLITICAL DEVELOPMENT
Ahn, JaeBin
Choi, Jaerim
Chung, Sunghoon
Labor Market Rigidity at Home and Multinational Corporations’ Flexible Task Reallocation Abroad
geographic_facet East Asia and Pacific
East Asia
Korea, Republic of
relation Policy Research Working Paper;10114
description An unprecedented regime change following the 2017 presidential impeachment led to a dramatic shift to more rigid labor market policies in the Republic of Korea, represented by consecutive double-digit hikes in the minimum wage in the next two years. Using a firm-level data set with detailed information about foreign affiliates for 2013~19, this paper assesses the employment consequences of stricter labor market regulations. The empirical evidence uncovers a relatively unexplored mechanism through which domestic labor market rigidity can potentially reduce domestic employment as multinational firms with flexible internal networks reallocate tasks across borders.
format Working Paper
author Ahn, JaeBin
Choi, Jaerim
Chung, Sunghoon
author_facet Ahn, JaeBin
Choi, Jaerim
Chung, Sunghoon
author_sort Ahn, JaeBin
title Labor Market Rigidity at Home and Multinational Corporations’ Flexible Task Reallocation Abroad
title_short Labor Market Rigidity at Home and Multinational Corporations’ Flexible Task Reallocation Abroad
title_full Labor Market Rigidity at Home and Multinational Corporations’ Flexible Task Reallocation Abroad
title_fullStr Labor Market Rigidity at Home and Multinational Corporations’ Flexible Task Reallocation Abroad
title_full_unstemmed Labor Market Rigidity at Home and Multinational Corporations’ Flexible Task Reallocation Abroad
title_sort labor market rigidity at home and multinational corporations’ flexible task reallocation abroad
publisher Washington, DC : World Bank
publishDate 2022
url http://documents.worldbank.org/curated/en/099558206292225157/IDU081e65d43046c7049fa09ee2063cd30a05a4b
http://hdl.handle.net/10986/37633
_version_ 1764487569493458944

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