Estimating Determinants of Unemployment Duration in Korea: Evidence from the Korean Labor and Income Panel Study
Estimating Determinants of Unemployment Duration in Korea: Evidence from the Korean Labor and Income Panel Study

Summary/Abstract: This paper examines the determinants of unemployment duration in Korea by using the Korean Labor and Income Panel Study (KLIPS) survey dataset. Empirical analyses find that unemployment duration increases when the subjects are female, older, have less than college education, have more family members, and have been unemployed for over 2 years. Specifically, the education effect is prominent during periods of economic crisis, (e.g. 1997-1998 and 2008-2009), implying that people with no college education have more difficulty finding employment during severe recessions rather than those with college degrees. In addition, we find that the duration of unemployment increases as the level of perception of life satisfaction is increases, which highlights the importance of personal psychological factors in explaining the average duration of Korean unemployment.

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