KDI "최저임금 인상 계속되면 득보다 실 크다"<br /><br /> South Korea's state-run economic institute highlighted the need for the government to consider slowing down, when it comes to raising the minium wage.<br />The KDI warns if the current pace continues, it could do more harm than good to the labor market.<br />Choi Si-young sheds light on the possible side effect. <br /> The Korea Development Institute said the increases in the minimum wage in 2019 and 2020 will result in job losses. <br />The think tank projects that a 15% wage increase each year in 2019 and 2020 will lead to a drop in employment of nearly 100 thousand jobs in 2019,... and 140 thousand jobs in 2020.<br /><br /> The estimate is based on a case in Hungary where the minimum wage was increased by 60% between 2000 and 2004. It also assumes that there is no government support for small businesses hit hardest by the minimum wage hike.<br /><br /> The institute also highlighted how France in 2005 stopped raising its minimum wage once it reached 60% of the median wage due to the increased difficulty that low-wage earners had in finding employment. Korea's minimum wage in 2018 is already 55% of the median wage. <br /><br />Recently, the Blue House said the 90% of the effects of the minimum wage increase are positive.<br />According to Yonhap News Agency, the top office made that calculation based on individual income, rather than household income, and excluding the unemployed and self-employed from statistics.<br /><br /> The Korea Development Institute also acknowledged that the minimum wage increase has so far had few side effects.<br />However, it warns that the government should monitor the effects of the minimum wage increase closely over the coming years.<br /><br />Choi Si-young, Arirang News. <br />
