Minimum wage introduction and employment: Evidence from South Korea

- We examine the effect of the introduction of minimum wage on employment in Korea.
- We apply a difference-in-differences framework to the plant-level panel data.
- The introduction of minimum wage increased the average remuneration for employees.
- The minimum wage introduction had no discernible effect on plant-level employment.

This paper examines the effect of the introduction of the national minimum wage on plant-level employment in South Korea. We show that the minimum wage introduction increased the average remuneration for employees, but has no discernible effect on plant-level employment.