Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments July 25, 2022 erstellt
Beschreibung:
I explore the effects of policies that affect relative prices between regular and non-regular workers in South Korea. To this end, I first estimate the constant elasticity of substitution (CES) production function using the Korean workplace level panel data. The estimated elasticity of substitution implies that regular and non-regular workers are substitutes. Based on the empirical estimate, I implement policy experiments and counter-factual analysis using the calibrated heterogeneous firm model. The model is rich as it calibrates both firing and hiring costs, which are crucial factors determining relative prices between regular and non-regular workers. I show that the implications of inequalities and efficiency depend on the degree of imperfect substitution