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Title: |
Concentration and Wage Earnings in an Open
Economy: A Case Study of Korea |
| Author: |
Park, Young-Bum |
| Author
Affiliation: |
Korea Inst Econ
Tech |
| Source: |
International Economic Journal, Spring 1987, v. 1, no. 1, pp. 29-42 |
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Publication Date: |
Spring 1987 |
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Abstract: |
The object of this paper is to increase
our understanding of the effect of output market power (the degree of
concentration in an industry) on wage earnings in Korea. We conduct a
series of econometric investigations based on the traditional human
capital theory and find that workers in a more concentrated industry are
paid higher. This wage premium is not explained in terms of the
differences in the quality of labor and/or compensating factors. It
suggests to us that the conventional estimates of the misallocations of
resources due to the output market power are underestimated since this
source of higher unit costs is disregarded. |
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