Higher percentage of permanent workers could enhance labor productivity: BOK
- 5 years ago
Data from South Korea's central bank shows.... if the proportion of permanent workers rises by one percentage point and that of temporary workers goes down by the same amount,... *overall labor productivity could rise by up to.... zero-point-five-six percent.
The Bank of Korea report compared 29 OECD countries' labor structure and productivity related data between 2006 and 2015.
It shows that,... as of 2015,.... the proportion of temporary workers in Korea was below 58 percent...., far lower than the OECD average of almost 74 percent.
The report said.... hiring more permanent workers could enhance productivity.... as temporary workers have lower work engagement and continuity that negatively affects productivity due to job insecurity and lower wages.
But the report added that,.... if the percentage of permanent worker goes above the level.... it can contribute to productivity but thathigher labor costs could dent corporate profits.
The Bank of Korea report compared 29 OECD countries' labor structure and productivity related data between 2006 and 2015.
It shows that,... as of 2015,.... the proportion of temporary workers in Korea was below 58 percent...., far lower than the OECD average of almost 74 percent.
The report said.... hiring more permanent workers could enhance productivity.... as temporary workers have lower work engagement and continuity that negatively affects productivity due to job insecurity and lower wages.
But the report added that,.... if the percentage of permanent worker goes above the level.... it can contribute to productivity but thathigher labor costs could dent corporate profits.