Author : Haemyoung Ji(Kangwon National University)

<Abstract>

In Input-output model, an employment multiplier is established for the first time to analyze an employment linkage relations and the opportunity cost of employment among industries. A supply multiplier is constructed by endogenizing profit into the model and the multiplier is transformed into an employment multiplier. In the empirical analysis, the average employment inducement effect of the service sector is lower than that of manufacturing industry, but considering the cost of employment, the private consumer service and the producer service sectors show greater the employment inducement effect than those of manufacturing sector. Other characteristics of employment linkage structures are that, first, the whole sale and retail industry great influence on the induced employment; second, manufacturing sector generates more employment in the service sector than that in the manufacturing sector; third, the service sector has an greater impacts on the employment in the service sector than that in the manufacturing sector.