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Labor Market Regime in Korea and Japan: Focusing on Policy Response after the Economic Crisis

Woo Jun Hee

서강대학교 동아연구소

Published: January 2018 · Vol. 75, No. 0 · pp. 169-219

DOI: https://doi.org/10.33334/sieas.2018.37.2.169

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Abstract

This paper aims to compare the policy responses of Korea and Japan to labor market regime after the economic crisis. This paper also seeks to identify commonalities and differences found in changes of labor market regimes. In particular, this paper aims to compare the impact of policy ideas and discourses on changes in labor market regimes. As a result of the analysis, the differences in the institutional and historical contexts between the two countries resulted in some differences even after the economic crisis. In Japan, despite the economic crisis, long-term employment practices did not fluctuate sharply, and irregular workers were used as the main means of job adjustment. The wage system has also changed in a way that only partially modifies the existing system, maintaining the annual pay system and wage on job evaluation. In Korea, unlike Japan, regular workers were dismissed more frequently than non-regular workers. And Korea has actively introduced performance-based wage system. However, Korea is a country where seniority remains strong, because companies that have unions in Korea have tried to maintain their seniority system. In Korea, where social discourse and institutional arrangements for social safety nets are relatively immature, the labor market regime better reflects power relations and government interventions.
Keywords: 노동시장레짐경제위기한국일본정책대응정책아이디어