Abstract

This is an accepted article with a DOI pre-assigned that is not yet published.

Despite the introduction and expansion of collective bargaining, minimum wages and unemployment and in‐work benefits, low pay is increasingly common in the Republic of Korea. This is at odds with much of the literature – including the ILO's Global Wage Report 2010/11 – which suggests that protective policies will curb low pay. Focusing on the Republic of Korea, the authors examine this intriguing paradox and conclude that while the appropriate policy “menu” was implemented, its effectiveness was limited by incomplete coverage and insufficient benefit levels. They suggest this disappointing situation represents not only a labour market failure, but also a policy failure.

Keywords: low wages, wage policy, Korea R, unemployment benefit, labour flexibility, minimum wage, collective bargaining

Rights: Copyright © The authors 2012 Journal compilation © International Labour Organization 2012