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BOK Working Paper No.2017-16, Analysis on the Determinants of Employment Proportion by Age Groups

Author : Sangwook Lee, Chul-Woo Kwon, Yunmi Nam
Economic Research Institute(+82-2-759-5634) 2017.06.06 5476

Title : Analysis on the Determinants of Employment Proportion by Age Groups
Authors : Sangwook Lee(Seoul National University of Science & Technology), Chul-Woo Kwon(Kyungpook National University), Yunmi Nam(BOK)

 

<Abstract>

 

We empirically analyze the determinants of employment proportions of workers by age groups, using data from “Workplace Panel Survey(WPS)”. Considering that the employments of a firm by different age groups are highly likely to be correlated with each other, we employ the Seemingly Unrelated Regression(SUR) Model.
The regression results tell us that the firms with the following characteristics hire more young workers: paying higher wage for young workers, having a lower ratio of temporary workers to permanent workers, a higher computer utilization, a bigger size, or a shorter age, located around the capital, or less influenced by the labor union. On the other hand, the firms that pay a lower wage for aged workers, have a lower ratio of temporary workers to permanent workers, a smaller size, or a longer age, not located around the capital, or more influenced by the labor union have the higher proportion of aged workers to total workers.
According to the estimation results, policies with consideration of these determinants of employment proportions by age groups are necessary for increasing employment of each age group.

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