Relationship regarding the demand for labor between domestic temporary and foreign workers: Korean case

► This paper examines the relationship concerning the labor demand of an establishment between domestic temporary and foreign workers. ► The analysis using the bivariate Tobit model shows that every business attempts to employ domestic temporary and foreign workers simultaneously. ► The empirical analysis found that any establishment that is relatively newly established and has difficulty in recruiting domestic workers hires foreign workers, but there is no evidence that establishments hire foreign workers rather than domestic temporary workers to save on the production cost.