Minimum wage, social insurance mandate, and working hours

• 成果类型: Article
• 署名作者: Kim, Ji Hwan; Lee, Jungmin; Lee, Kyungho
• 署名单位: University of Pennsylvania; Seoul National University (SNU); Yale University
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2023.104951
• 发表日期: 2023
• 关键词: Social insurance mandate; Exempt workers; Minimum wage; work hours; Short-time workers

摘要

Raising the minimum wage may have unintended negative consequences for workers. In South Korea, employers are required to contribute towards their employees' social insurance, with the amount proportional to earnings. However, workers employed for less than 60 h per month are exempt from this contribution requirement. Using administrative payroll records from 2011 to 2019, we find that raising the minimum wage results in a higher share of the exempt workers. Our results remain robust when focusing on unanticipated hikes in the minimum wage in 2018 and 2019.