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The Effect of the Minimum Wage on Working Hours and Wages by Industry

Author Kim Youngmin(김영민) Date 2020.10.30 Series
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Nowadays, the need to alleviate inequality and polarization is increasing. The current administration has promulgated income-led growth as its main economic policy paradigm. It is designed to stimulate aggregate demand by promoting income growth for household and the self-employed. It is based on wage-led growth.
The minimum wage is a very important policy tool for the incumbent government’s economic policy. The minimum wage has sharply risen since the current government came to power; the minimum wage grew by 16.4 percent in 2018 and 10.9 percent in 2019. After the global financial crisis, the growth rate of the minimum wage in 2018 was the largest yet recorded, and the first instance of consecutive years of double-digit growth. In addition, the issue of the minimum wage level and its growth rate has typically attracted much public attention owing to the fact that it has direct implications for worker’s wages.