An analysis of employment dynamics in the Republic of Korea: The role of temporary work and self-employment

Abstract

Relative to “standard”, permanent employment, the shares of temporary employment and self-employment are on the rise throughout much of the developed world. Here, the author examines the dynamics of this trend in the Republic of Korea by investigating employment choices among prime-age men and women. Using panel data and a dynamic multinomial logit model with a factor-analytic random-effects specification, he finds that temporary employment rarely serves as a stepping stone towards permanent employment. Individuals who are self-employed, however, are less likely than those in any other employment status category to be non-employed in the following year.