The labor market structure of knowledge-based industries : a Korean case

This paper analyses the labor market structure of knowledge-based industries vis-à-vis industries with low knowledge intensity, in terms of employment and wage structures. Empirical evidence suggests that knowledge-based industries have been largely responsible for employment growth and structural changes, not to mention output growth, in Korea, just as in most other OECD countries. In comparison with other industries, knowledge-based industries are characterized by a higher ratio of knowledge-intensive jobs, higher hourly wage rates (for workers with comparable qualifications), and a higher wage premium of education. The rent of knowledge-based industries, if any, is skewed toward more educated workers, implying a skill bias in knowledge-based industries. The foreseen structural shift from traditional industrial sectors to knowledge-based industrial sectors thus implies that labor demand will center more around highly-skilled and high-paying jobs. This in turn will result in a widening gap in employment opportunities and wages, between economic sectors with growing labor demand and those without. (J Asia Pac Econ/DÜI)