Imperfect information and labor market bias against small and medium-sized enterprises: a Korean case
Name
Park et al_2014_imperfectInfomation&anti-SMEmarketBias.pdf
Description
Main article
Size
1.78 MB
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Checksum (MD5)
3c3403e18df816a42625bcd094e3c491
Author(s)
Park, Soonae
Kim, Byung-Yeon
Jang, Wonchang
Nam, Kyung-min
Date Issued
March 2014
Journal
Small Business Economics
Publisher
Springer-Verlag
Citation
Park, Soonae, Byung-Yeon Kim, Wonchang Jang, and Kyung-Min Nam. “Imperfect Information and Labor Market Bias Against Small and Medium-Sized Enterprises: a Korean Case.” Small Business Economics (March 20, 2014).
Version
Author's final manuscript
Abstract
We examine the labor market’s bias against small and medium-sized enterprises focusing on the Seoul Digital Industrial Complex case. We adopt Heckman’s approach to control selection bias, and use primary data from questionnaire surveys conducted at both firm and employee levels. We find that conventional firm-specific factors, such as wages, fringe benefits, and weekly work hours, primarily explain the labor market bias, but imperfect information is also positively associated with the bias. For example, a firm’s inadequate ability to identify a pool of potential employee candidates or to provide them comprehensive firm- or job-specific information tends to worsen labor shortages, and an employee’s ex-ante incomplete knowledge of on-the-job training or education opportunities tends to increase ex-post turnover intentions. Our results suggest that reducing the market bias requires improving imperfect information as well as conventional firm-specific conditions.
MIT Department
Massachusetts Institute of Technology. Joint Program on the Science & Policy of Global Change
MIT Energy Initiative
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Article is made available in accordance with the publisher's policy and may be subject to US copyright law. Please refer to the publisher's site for terms of use.
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DOI of Published Version
https://doi.org/10.1007/s11187-014-9571-7
