International Comparisons on Internal Labor Markets and Corporate Performance
This paper presents an analytical framework which demonstrates how the structures of corporate internal labor markets are formed within the broader labor and capital market context in the U.S. and Japan. This framework is then used to evaluate labor markets within Korean companies and to identify po...
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| Format: | Article |
| Language: | English |
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Korea Institute for International Economic Policy
2003-12-01
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| Series: | East Asian Economic Review |
| Subjects: | |
| Online Access: | http://dx.doi.org/10.11644/KIEP.JEAI.2003.7.2.108 |
| _version_ | 1818055468008865792 |
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| author | Joonmo Cho |
| author_facet | Joonmo Cho |
| author_sort | Joonmo Cho |
| collection | DOAJ |
| description | This paper presents an analytical framework which demonstrates how the structures of corporate internal labor markets are formed within the broader labor and capital market context in the U.S. and Japan. This framework is then used to evaluate labor markets within Korean companies and to identify points of change which might promote greater efficiency. Prior to the Asian economic crisis, Korean conglomerates had large, closed internal labor markets. However, in the aftermath of the crisis, they have pursued structural downsizing and moved to open their labor markets. The empirical evidence introduced in this paper affirms the argument that the first step toward creating a flexible labor market in Korea should begin with establishing an efficient corporate governance structure. This implies that a simple switch from the Japanese paradigm for human resource management to an Anglo-American model or vice-versa may not improve internal labor market performance unless the change is accompanied by a solution to the problems posed by the minority controlling structure of Korean companies. The implications of this study for guiding policy in developing countries having labor market rigidities and underdeveloped corporate governance is clear. Capital market structure and corporate governance systems may provide an appropriate starting point for the development of any policies aimed at building an efficient human resource management system and a flexible labor market. |
| first_indexed | 2024-12-10T12:13:25Z |
| format | Article |
| id | doaj.art-e4a38f172bbd4552869c43a9877441c9 |
| institution | Directory Open Access Journal |
| issn | 2508-1640 2508-1667 |
| language | English |
| last_indexed | 2024-12-10T12:13:25Z |
| publishDate | 2003-12-01 |
| publisher | Korea Institute for International Economic Policy |
| record_format | Article |
| series | East Asian Economic Review |
| spelling | doaj.art-e4a38f172bbd4552869c43a9877441c92022-12-22T01:49:17ZengKorea Institute for International Economic PolicyEast Asian Economic Review2508-16402508-16672003-12-017279110http://dx.doi.org/10.11644/KIEP.JEAI.2003.7.2.108International Comparisons on Internal Labor Markets and Corporate PerformanceJoonmo Cho 0Soongsil UniversityThis paper presents an analytical framework which demonstrates how the structures of corporate internal labor markets are formed within the broader labor and capital market context in the U.S. and Japan. This framework is then used to evaluate labor markets within Korean companies and to identify points of change which might promote greater efficiency. Prior to the Asian economic crisis, Korean conglomerates had large, closed internal labor markets. However, in the aftermath of the crisis, they have pursued structural downsizing and moved to open their labor markets. The empirical evidence introduced in this paper affirms the argument that the first step toward creating a flexible labor market in Korea should begin with establishing an efficient corporate governance structure. This implies that a simple switch from the Japanese paradigm for human resource management to an Anglo-American model or vice-versa may not improve internal labor market performance unless the change is accompanied by a solution to the problems posed by the minority controlling structure of Korean companies. The implications of this study for guiding policy in developing countries having labor market rigidities and underdeveloped corporate governance is clear. Capital market structure and corporate governance systems may provide an appropriate starting point for the development of any policies aimed at building an efficient human resource management system and a flexible labor market.http://dx.doi.org/10.11644/KIEP.JEAI.2003.7.2.108Internal Labor MarketsMinority Controlling Structure |
| spellingShingle | Joonmo Cho International Comparisons on Internal Labor Markets and Corporate Performance East Asian Economic Review Internal Labor Markets Minority Controlling Structure |
| title | International Comparisons on Internal Labor Markets and Corporate Performance |
| title_full | International Comparisons on Internal Labor Markets and Corporate Performance |
| title_fullStr | International Comparisons on Internal Labor Markets and Corporate Performance |
| title_full_unstemmed | International Comparisons on Internal Labor Markets and Corporate Performance |
| title_short | International Comparisons on Internal Labor Markets and Corporate Performance |
| title_sort | international comparisons on internal labor markets and corporate performance |
| topic | Internal Labor Markets Minority Controlling Structure |
| url | http://dx.doi.org/10.11644/KIEP.JEAI.2003.7.2.108 |
| work_keys_str_mv | AT joonmocho internationalcomparisonsoninternallabormarketsandcorporateperformance |