North Korea's COVID-19 policy dilemma: epidemic prevention conflicting with trade.

BACKGROUND: Amidst the COVID-19 pandemic, striking a delicate balance between sustaining economic activity and safeguarding public health has become a crucial concern. The border closures for COVID-19 prevention have further intensified concerns for North Korea, which conducts over 90% of its trade with China and Russia, countries sharing its borders. METHODS: This study aims to scrutinize North Korea's response to these competing imperatives by examining the impact of border closures on the country's trade dynamics with China and Russia. This study employed the difference-in-difference (DID) method to analyze transformations in North Korea's economic activity before and after the border closures, utilizing trade data and nighttime satellite imagery captured in 2019 and 2020. RESULTS: The results reveal that North Korea actively reoriented its trade priorities towards Russia and accorded precedence to its epidemic prevention system over its economy during the pandemic. A noticeable increase in imports of food and pharmaceuticals was observed, indicating a significant rise in the inflow of these essential commodities. CONCLUSION: The findings of this study suggest that during the early stages of the COVID-19 pandemic, North Korea placed significant policy emphasis on preserving public health. However, due to economic hardships and food shortages, if the pandemic persists in the long term, it indicates the possibility of partial or complete lifting of border closures to mitigate these challenges.

Can COVID-19 mark a tipping point for home-based telework? Conflict between untact technology and rigid institutions in Korea.

Background: Previously, Korea showed a passive attitude toward home-based telework; however, this stance rapidly changed after the COVID-19 pandemic. Sustaining home-based telework entails adjusting productivity conditions, introducing performance-based evaluations, and modifying employment rules, as required by the Korean Labor Standards Act, which demand the consent of most workers. This study aims to explore the societal and institutional shifts necessary for ongoing home-based telework post-pandemic. Methods: This study discusses the sustainability of home-based work based on survey data and materials from institutions and previous research. It used data from the Workplace Panel Survey provided by the Korea Labor Institution for 3 years (2015, 2017, and 2019) to examine the status of home-based work and business responses. It also addresses legal issues related to changes in working conditions and worker-management agreements resulting from telework implementation. Legal aspects of telework are explained using relevant sections of Korea's labor laws. Results: To establish home-based telework as a working method relevant to the Fourth Industrial Revolution after the pandemic, essential discussions are needed regarding its fundamental applicability to specific job sectors. Moreover, to activate home-based telework without deteriorating working conditions, achieving agreement between workers and management is imperative. However, legal complexities necessitate systemic changes for effective resolution. For the sustainable continuity of telework, a blend of societal awareness and institutional transformations is indispensable. Discussion: The growth of home-based telework through untact technology expansion is hindered by inflexible Korean labor laws, judicial precedents, and worker-management relations. The absence of necessary legal and organizational changes could lead Korea to revert to pre-pandemic norms or slow implementation. Initially prevalent in IT, home-based telework has expanded across sectors due to the pandemic. Leading the "new normal," companies creatively enhance productivity through telework, but rigid systems and outdated cultures could impede post-pandemic progress. Conclusion: The study highlights the need for forward-looking institutional changes and adaptation to advancing technology. It provides valuable insights for organizations and policymakers to optimize work dynamics and enhance employee and employer well-being in the post-COVID-19 era.

Parenthood and Life Satisfaction in Stratified Labor Market: Evidence From Korea.

This study analyzes the effect of parenthood on life satisfaction with a stratified labor market using the Korean Labor and Income Study. For regular female workers at large companies, the decrease in life satisfaction due to parenthood is higher compared to that for men in a similar position due to the high opportunity cost of a career break following childbirth. For men who are non-regular employees at Small and medium-sized enterprises (SMEs), the effect of parenthood on life satisfaction is negative because they are the income earners of the family but earn a relatively low income at SMEs. Based on the results, the job characteristics of a stratified labor market have a significant influence on life satisfaction regarding parenthood. To enhance parental life satisfaction and raise the fertility rate, the structure of the stratified labor market needs to be changed so that the labor market becomes more flexible and includes a solid social safety net.

Young people are medically invulnerable to COVID-19 but vulnerable in the labor market: Korean evidence.

BACKGROUND: COVID-19 and its preventive measures affect not only the state of public health but also the economy. The economic impact of COVID-19 varies depending on age, and it is argued that young people have experienced the greatest negative impacts. METHODS: This study was an analysis of the impact of the COVID-19 outbreak in January 2020 on the Korean labor market. Large-scale data from the Economically Active Population Survey from January to June of 2018 to 2020 were used when analyzing the impacts of COVID-19 on unemployment and the economically inactive population by age group. Through this study's empirical analysis, we examined for this study whether the COVID-19 outbreak has affected the labor market differently based on age. By analyzing the interaction terms of the young person's status and the time of the COVID-19 outbreak, we determined the impacts of the outbreak on economic inactivity among young people, as well as examining the reasons for these differential effects. RESULTS: Compared with the middle-aged or older group, young people were more likely to become economically inactive than unemployed. Our empirical results using multinomial logistic regression revealed several reasons for the increase in economic inactivity, such as discouragement during the job search, childcare, housework, and studying at an institution, along with other determinants of economic inactivity. Young people showed a significantly higher relative probability of becoming economically inactive or discouraged job seekers following the COVID-19 outbreak when compared to other age groups. In addition, through the analysis of the possibility of employment, the young people responded negatively to the possibility of employment in the future compared to the middle-aged after COVID-19. CONCLUSION: Young people in South Korea possess little career experience in the labor market and tend to be seeking work rather than working. Because economic activities are likely to shrink structurally during a pandemic, it is necessary to empirically determine the damage incurred by people who are vulnerable in the labor markets, such as the younger population which was the subject of this study. Accordingly, future policy directions are suggested for the prevention of a rapid increase in the rate of economic inactivity among the younger population during the pandemic.

Uneven Use of Remote Work to Prevent the Spread of COVID-19 in South Korea's Stratified Labor Market.

Background: This research analyzed whether South Korean companies adopted remote work during the COVID-19 pandemic by focusing on the dual labor market structure comprising of primary sector (large corporations) and secondary sector [small and medium enterprises (SMEs)]. Companies in the dual labor market were classified based on firm size. Methods: We used August supplementary data from the Economically Active Population Survey covering 2017-2020 provided by Statistics Korea. In this empirical study, a Linear Probability Model was used to analyze the probability that employees would work for companies that introduced remote work since COVID-19 depending on the size of the company. Results: This study showed three main results. First, unlike other flexible work systems, the use of remote work has increased rapidly since COVID-19. Second, the larger the size of the company, the higher the probability that employees would work for companies that introduced remote work after COVID-19. Third, according to the analysis by industry, the difference in remote work utilization between large corporations and SMEs was relatively small because of a similar working method in manufacturing. Conclusion: Results of this study suggested that polarization within the dual labor market structure also spilled over to adoption of remote work, which was initially introduced to prevent the spread of the pandemic. This study examined the system and factors of labor-management relations contributing to such polarization and presented policy directions for the current labor market structure.

Older Adults' Avoidance of Public Transportation after the Outbreak of COVID-19: Korean Subway Evidence.

With the spread of the coronavirus worldwide, nations have implemented policies restricting the movement of people to minimize the possibility of infection. Although voluntary restriction is a key factor in reducing mobility, it has only been emphasized in terms of the effect of governments' mobility restriction measures. This research aimed to analyze voluntary mass transportation use after the severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2) outbreak by age group to explore how the perception of the risk of infection affected the public transit system. Mass transportation big data of Seoul Metro transportation use in the capital city of Korea was employed for panel analyses. The analysis results showed that in the period with both the highest and lowest number of infections of SARS-CoV-2, users aged 65 years and over reduced their subway use more than people aged between 20 and 64. This study also found that the decrease in subway use caused by the sharp increase of coronavirus disease 2019 (COVID-19) cases was the most prominent among people aged 65 years and over. The results imply that the elders' avoidance of public transportation affected their daily lives, consumption, and production activities, as well as their mobility.

Effects of Working Couple's Retirement Sequence on Satisfaction in Patriarchal Culture Country: Probing on Gender Difference.

We examined the effects of the differences in the retirement sequence (i.e., who retires first between spouses) on satisfaction in Korea of patriarchal culture. Our empirical study demonstrates that households where men retired first had a much lower satisfaction than households where women retired first. In addition, men were found to show lower satisfaction than wives in both households where women retire first and the households where men retire first. Retirement sequence affecting their satisfaction at the point when only one of the spouses is retired continues to affect their satisfaction after both of them are retired. This means that the difference in the couple's retirement sequence has an ongoing effect on their later happiness. The analysis of the effect of a couple's retirement sequence on the satisfaction in their old life may be useful for improving an individual and couples' quality of life in countries with similar cultures.

The impact of city epidemics on rural labor market: The Korean Middle East Respiratory Syndrome case.

This study compared the changes in employment in urban areas in Korea, where a large number of people were quarantined by the Middle East Respiratory Syndrome epidemic, to those in rural areas, where only a small number of people were quarantined using the difference-in-difference approach. The results indicate that the urban labor market experienced a direct effect in terms of a reduction in employment of the group vulnerable to the epidemic while the rural labor market experienced an indirect effect on its economy through a reduction in employment resulting from a decline in consumption and leisure activities. If one looks into the employment in the accommodation and leisure industry, which sustained the most severe blow, dropped to its lowest level right after the Middle East Respiratory Syndrome outbreak. The rural leisure and accommodation industries are highly likely to be dependent on consumption and spending from urban areas. The results suggest that the rural labor market was influenced by the spillover/external effects caused by behavioral changes among people in urban areas due to fear of infection. Thus, this empirical analysis can be used to customize policy to support regions that can be negatively impacted by spillovers due to epidemic in order to respond against economic stresses.

The impact of epidemics on labor market: identifying victims of the Middle East Respiratory Syndrome in the Korean labor market.

BACKGROUND: The vulnerability approach suggests that disasters such as epidemics have different effects according not only to physical vulnerability but also to economic class (status). This paper examines the effect of the Middle East Respiratory Syndrome epidemic on the labor market to investigate whether vulnerable groups become more vulnerable due to an interaction between the socio-economic structure and physical risk. METHODS: This paper examines the effect of the Middle East Respiratory Syndrome epidemic on the labor market by considering unemployment status, job status, working hours, reason for unemployment and underemployment status. In particular, the study investigates whether the U-shaped curve becomes a J-shaped curve due to the interaction between medical vulnerability and labor market vulnerability after an outbreak, assuming that the relative vulnerability in the labor market by age shows a U curve with peaks for the young group and middle aged and old aged groups using the Economically Active Population Survey. We use the difference in difference approach and also conduct a falsification check and robustness check. RESULTS: The results suggest that older workers faced a higher possibility of unemployment after the Middle East Respiratory Syndrome outbreak. In particular, they experienced higher involuntary unemployment and underemployment status as well as decreased working hours. It was confirmed that the relative vulnerability of the labor market for older workers was higher than for the other age groups after the epidemic outbreak due to the double whammy of vulnerability in the medical and labor market. The vulnerability in the young group partially increased compared to the 30s and 40s age groups due to their relative vulnerability in the labor market despite being healthy. We find that assuming the relative vulnerability in the existing labor market shows a U shape with age increase, the U-shaped curve became J-shaped after the outbreak. CONCLUSIONS: Disasters like epidemics can occur unexpectedly and affect certain groups more than other. Therefore, medical protection should be enhanced for groups vulnerable to disease and economic measures are also required for the protection of their livelihoods in the labor market to prevent unemployment stemming from inequality.

A Comparative Study on Retirement Process in Korea, Germany, and the United States: Identifying Determinants of Retirement Process.

This study classifies the retirement process and empirically identifies the individual and institutional characteristics determining the retirement process of the aged in South Korea, Germany, and the United States. Using data from the Cross-National Equivalent File, we use a multinomial logistic regression with individual factors, public pension, and an interaction term between an occupation and an education level. We found that in Germany, the elderly with a higher education level were more likely to continue work after retirement with a relatively well-developed social support system, while in Korea, the elderly, with a lower education level in almost all occupation sectors, tended to work off and on after retirement. In the United States, the public pension and the interaction terms have no statistically significant impact on work after retirement. In both Germany and Korea, receiving a higher pension decreased the probability of working after retirement, but the influence of a pension in Korea was much greater than that of Germany. In South Korea, the elderly workers, with lower education levels, tended to work off and on repeatedly because there is no proper security in both the labor market and pension system.