earticle

영어

The purpose of this study is to investigate the productivity wage differentials between regular and irregular workers in Korea. In order to get rid of selectivity bias, this study considers three equations：selection equation and wage equations for regular and irregular workers. Moreover, the wage gap can be divided into productivity wage gap and discrimination by Oaxaca's method.According to the empirical results from this study, the wage gap explained by the productivity differentials is 23.6%; on the other hand, the wage gap explained by discrimination is 76.4%. These results indicate that the wage gap between regular and irregular workers can be mainly explained by discrimination in the labor market. In addition, these empirical results can be varied among the different industries.The empirical results in this study; however, can be obtained under the strong assumption that the decision for the job selection between regular and irregular work can be made by an individuals preference. Otherwise, the empirical results in this study can be varied based upon the different conditions.