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BOK Working Paper No.2016-17, Effects of Increasing Non-regular Workers on Wage Distribution: An Application of RIF Regressions

Economic Research Institute (+82-2-759-4291) 2016.12.04 3682

 

Title : Effects of Increasing Non-regular Workers on Wage Distribution: An Application of RIF Regressions
Authors : Chung Choe(Hanyang University(ERICA)), Sungyup Chung(BOK)


<Abstract>

 

This paper examines the effects of the expansion of non-standard work arrangements on the distribution of wage income. Specifically, we quantitatively estimate the effects of the increased proportion of non-regular workers among wage earners on each income quantile and subsequent changes in Gini coefficient by using the Recentered Influence Function (Firpo et al., 2009). According to the analysis on 2014 survey on the working conditions, the increase in non-regular workers negatively influence income inequality in Korea. It turns out that the rise in non-standard work arrangement aggravates overall income inequality not only by lowering the wages of low-wage workers, but also by improving the wages of high-wage workers.

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