Abstract
The job stabilization fund in Korea was introduced to mitigate the negative impacts of a sharp increase in the minimum wage in 2018. This study estimates the employment effect of the fund by considering that only firms with fewer than 30 employees are eligible for the fund and using an empirical model that allows for interaction between exposure to the minimum wage (treatment intensity) and a policy dummy variable in a standard DID model. The estimation results show that the fund greatly alleviates the adverse effects of the minimum wage increase on employment: firms not receiving the fund significantly decrease employment for all cases, while those receiving it either slightly decrease or even increase employment in response to the minimum wage hike in 2018.
| Original language | English |
|---|---|
| Pages (from-to) | 427-431 |
| Number of pages | 5 |
| Journal | Applied Economics Letters |
| Volume | 33 |
| Issue number | 3 |
| DOIs | |
| State | Published - 2026 |
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
-
SDG 8 Decent Work and Economic Growth -
SDG 10 Reduced Inequalities
Keywords
- employment effects
- exposure to the minimum wage
- Job stabilization fund
- minimum wage
Quacquarelli Symonds(QS) Subject Topics
- Economics & Econometrics
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