논문목차
Does the Minimum Wage Affect Non-wage Workers?
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AuthorHyunbae Chun (Sogang University), Jungmin Lee (Seoul National University) and Donghan Shin (Korea Institute for Industrial Economics & Trade)
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Year2024
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VolumeVol.40
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NumberNo.1
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Non-wage workers, although not directly subject to the minimum wage laws, can be affected by a minimum wage increase, because labor markets are not segmented between wage and non-wage workers. Using 10-year longitudinal data on the universe of establishments in South Korea, we find that an increase in the minimum wage negatively affects the job growth of non-wage workers and that the largest channel for the effect is job destruction through business closing. The effect is larger in sectors that mainly consist of small businesses and low-skilled workers.
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