A study on changes of wage distribution in Korea, 1976--1998, from the perspective of skill-biased technological changes

This dissertation analyzes the U-turn of wage distribution of Korea from wage compression to increasing wage dispersion since 1994.;First, using Occupational Wage Survey (OWS) data between 1976--1998, this dissertation has found that the relative supply of more educated and more experienced workers has increased between 1976--1998 and the increase is accelerating in 1990s. The results of the full distribution decomposition analysis show that wage compression between 1976--1994 is mainly attributed to the decreasing wage premium for education and experience due to the increasing relative supply of more skilled and experienced workers between 1976--1994; and increasing wage dispersion between 1994--1998 is mainly attributed to the increasing wage premium for education and experience in spite of the accelerating increase of relative supply of more educated and more experienced workers. This evidence implies that a great increase of relative demand for more skilled workers has occurred in Korea between 1994--1998.;Second, using Occupational Wage Survey (OWS) data between 1976--1998, this dissertation finds that both between-industry and within-industry skill upgrading have played a significant role in the overall increase of share of skilled workers in workforce composition during increasing wage dispersion between 1994--1998. This evidence suggests that the skill biased technological change might have increased the relative demand for skilled workers within detailed industries and caused increasing wage dispersion between 1994--1998. The evidence also suggests that the globalization might have played an important role in increasing wage dispersion between 1976--1998 in Korea.;Third, using Korean Industrial Census (KIC) data between 1983--1998, plant level panel data, this dissertation finds that the within-plant skill upgrading positively contributes to overall skill upgrading during the both wage compression period between 1983--1993 and increasing wage dispersion between 1993--1998. This dissertation also finds that the contribution of between-plant employment shifts across plants with different skill composition of workforce is negative during wage compression between 1983--1993, but it has become positive and dominantly contributes to the overall skill upgrading during increasing wage dispersion between 1993--1998.;This dissertation also finds that the changes in the net entry of plants dominantly accounts for overall skill upgrading of workforce composition during the wage compression between 1983--1993 but becomes insignificant during the increasing wage dispersion between 1993--1998. (Abstract shortened by UMI.)...