This study aims to identify changes in early work career of youth cohort entering the labor market pre and post-the economic crisis and compare the labor outcome of different cohorts.
A drastic increase in youth unemployment has become a social iss...
This study aims to identify changes in early work career of youth cohort entering the labor market pre and post-the economic crisis and compare the labor outcome of different cohorts.
A drastic increase in youth unemployment has become a social issue since the economic crisis in 1997 though the research on labor market experience of the youth remains limited to this date. Examining school-to-work transition and identifying status change within the labor market among the youth have been difficult mainly due to the lack of time-series data.
This study used individual and work history data from the Korean Labor and Income Panel Study (KLIPS). A separate cohort data on labor market experiences pre and post- the economic crisis was constructed by sequencing the 72-month term of labor market experience of youth having completed the formal education from 1990~1991 and 2000~2001.
More specifically, labor market experiences of youth cohort were constructed by sequencing the number of organizations, kinds of jobs, the scale of the business, and type of employment. In addition, a holistic sequence was created by including complementary factors. In this sense, the labor market experience in this study was conceptualized as a process involving continuous sequences and hierarchical and orderly changes which differs from a simple job mobility.
The findings yielded from this study are as follows.
First, the comparison between the labor market entry process of pre- and post-economic crisis cohorts showed that transition-to-work period has extended and that the quality of their first job in terms of types of employment and the scale of business has significantly decreased. Competition for jobs has intensified with the decrease in demand for youth labor and this has led to a long-term preparation period for entry into first job for youth. Decrease in quality of jobs for youth and downward employment trend have led to an overall reduction in quality of their first jobs.
Second, job sequence was directly compared to identify cohort-differences in changes of labor market experiences. The result showed that among the post-economic crisis cohort, the job mobility took place frequently while the period of employment in large corporations has decreased and the unemployment period has increased. As the next step, sequence analysis involving Optimal Matching method was conducted to examine whether such cohort-differences in labor market experiences were related to differences in distribution of career pathway types.
The result showed that the post-economic crisis cohort had a relatively higher likelihood of falling into the non-employment type, unemployment type, non-corporate employment type, irregular employment type, and mobile employment type.
Third, the effect of change in labor market experience pre-and post-the economic crisis on income was examined. Characteristics of labor market entry and adjustment process were taken into account in analyses and the result showed that the income level significantly decreased around the 72nd month of their employment after the economic crisis. The transition period into their first job and the number of jobs they have held, and the period of unemployment negatively affected their income level while having their first job in the form of regular employment at corporate level positively affected their income level. Under the hypothesis that the characteristics of entry and adjustment process into the labor market experiences had different effect on cohorts, the analyses were conducted. The result also showed that having their first job in the form of regular employment differently affected each cohort and the difference was significant. In sum, findings showed that the ratio of irregular and regular employment and the gap in the income level between these two types of employment have increased drastically compared to pre-economic crisis period and this is factor that distinguish the characteristics of pre and post- economic crisis labor market experiences for youth.
With the extended period of school-to-work transition and an increase in mobility after the economic crisis, the degree of certainty of continuing job was fallen, then the precariousness of employment has exacerbated. An increase in experiences in the irregular employment sector indicates the weakening of control over work and an increase in employment in non-corporate sectors may be also interpreted as increased precariousness at corporate structural level and social protection. Significant reduction in income after the economic crisis also indicates the increase in economic instability. In sum, the findings provide empirical evidence supporting the hypothesis that the employment precariousness of cohort has exacerbated after the economic crisis.
This study attempted to capture the changes over time by identifying the labor market experiences in continuous sequence. In addition, this study gains significance as it attempted to compare the labor market experiences of cohorts specifically those of pre- and post-economic periods. However, limitations also should be acknowledged; observation period was short to gain an overall understanding of the work career in life-course and the potential factors influencing the change were not identified in present study.