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Abstract ▼ AI-Helper

It is widely believed that the labor market discrimination based on the region of birth is a significant source of regional conflicts in Korea. Empirical studies, however, do not find any significant effects of the region of birth on wages. This paper, using the 2% sample of the 2000 Korean Census, ...

It is widely believed that the labor market discrimination based on the region of birth is a significant source of regional conflicts in Korea. Empirical studies, however, do not find any significant effects of the region of birth on wages. This paper, using the 2% sample of the 2000 Korean Census, demonstrates that the cleavage between public belief and empirical studies can be filled by the findings that the types of prestigious occupations that workers occupy differ across their region of birth. The probability of having managerial occupations is substantially lower for workers born in Honam than for workers born in Seoul or Youngnam. However, workers from Honam are more likely to have professional occupations. That is, the lower likelihood of having managerial occupations for workers born in Honam may bring about the public notion of regional discrimination, but the higher probability of having professional occupations for those who born in Honam results in insignificant empirical effects of the region of birth in studies of wage gaps. These differentiated labor market achievement mechanism by the region of birth vary across educational levels as well as age groups.

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