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Technological Progress and Youth Employment in South Korea |
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| Authors: | Won Hyeok Kim Seohyun Lee Hee-Seung Yang |
| Institution: | 1. School of Economics, Sogang University, Seoul, South Korea;2. Macroeconomics Team, Economic Research Institute, Bank of Korea, Seoul, South Korea;3. Asia Pacific Department, International Monetary Fund, Washington, DC, USA;4. School of Economics, Yonsei University, Seoul, South Korea |
| Abstract: | ABSTRACTThis paper analyzes the extent to which technology progress and youth employment are related. In doing so, we divide workers into two groups – young workers and old (prime-aged) workers - and then estimate the elasticity of substitution between (physical) capital and workers à la Jaimovich et al. (2013. “The Demand for Youth: Explaining Age Differences in the Volatility of Hours.” American Economic Review 103 (7): 3022–3044) by using the Korean labour market data between 2000 and 2014. Our findings indicate that the elasticity of substitution is greater (or at least not smaller) for young workers than for old workers. |
| Keywords: | Labour demand technological progress youth employment Korean economy elasticity of substitution between capital and workers |