Women in the workplace: Gender and wage differentials

The purpose of this study is to clarify the real causes of gender wage differentials in Korea by analyzing changes over the period 1988-1999. The participation rate of women in the Korean labor force has gradually increased since 1963, reaching 47.4 percent as of 1999. This increase can be attributed to more active participation by women of all ages, except those between the ages of 15-19, as a result of their enrollment in higher level education. In particular, a remarkable rise in labor market participation was achieved by those between the ages of 25-29. On the other hand, the gender gap in terms of pay has gradually decreased-the ratio of female workers' earnings to that of male workers has increased from 45.1 perecent in 1972, to 63.1 percent in 1999. However, when the gender wage differentials were broken down into their various categories, it was found that discrimination against female workers, compared to the gender gap, played a greater role in human capital endowment as it relates to productivity for the 1988-1999 period.