[서울신문] OECD “Inclusive growth in culture has improved the quality of life for Koreans”

Evaluation of KDI-OECD’Korea’s Inclusive Growth’

“The Korean version of the New Deal’Inclusive Society’ is a suitable policy
To resolve the labor market dual structure and employment gap”
Expert “Reduction in low-wage jobs is counterproductive”

The Organization for Economic Co-operation and Development (OECD) evaluated that’Inclusive Growth’, one of the Moon Jae-in administration’s core economic policies, improved the quality of life for the people. In the latter half of the Moon Jae-in administration, the’Korean version of the New Deal’ was also judged as a desirable policy for realizing an’inclusive society’. However, he pointed out that Korea’s dual labor market structure and the problem of the productivity gap between large and small and medium-sized enterprises still need to be resolved.

On the 8th, the OECD and the Korea Development Institute (KDI) held a report on’Research on Inclusive Growth in Korea: Creating Opportunities for All’ and announced the results and implications of the research conducted by the two organizations for two years from 2019. This report is the first report to apply the’Sectoral Indicators System’ (framework), which the OECD has designed to allow international comparisons of the status of inclusive growth in member countries. ▲Gross domestic product (GDP) increase per capita ▲Income distribution (5th quintile multiplier) ▲Lower 40% of wealth ▲Relative poverty rate ▲Employment rate ▲Wage income distribution ▲Gender wage gap ▲Income correlation coefficient between generations ▲Government reliability Year research was conducted.

The OECD said, “The Korean government has shifted to a policy paradigm that emphasizes participation in economic activities from all classes through a balance of growth and distribution. Through this, household income and the employment rate of youth and women have improved, and the proportion of low-wage workers and working hours per year have also improved. Decreased.” “The policy of strengthening public education, such as the abolition of free high school tuition and university admission fees, is expected to greatly expand the opportunities for low-income families to participate in society.” It also contributed to the stability of life and life.”

Regarding the Korean version of the New Deal, he said, “Digital transformation and eco-friendly growth are the two pillars, and support for the underprivileged by strengthening the employment safety net.” It was evaluated that the regularization of non-regular workers in the public sector, the increase in the minimum wage and unemployment benefits, and the expansion of employment insurance coverage contributed to strengthening employment welfare by reducing the wage gap between non-regular workers and regular workers.

However, the OECD pointed out that Korea’s labor market dual structure is still a task to be solved. It was suggested to close the employment gap by improving the conditions for non-regular workers and strengthening the minimum wage system. In addition, he recommended that it is necessary to establish a social safety net and support income and reemployment to cope with the rapidly changing labor market such as job loss due to automation. Although Korea has grown into the world’s sixth-largest export country, he feared that the development of the manufacturing industry centered on the chaebol could hinder innovation as well as the productivity gap between the service industry, manufacturing, and large and small companies.

Domestic experts diagnosed that the Moon Jae-in administration’s inclusive growth was an attempt to take our society to the next level, but it was only’half success’. Yang Jun-seok, a professor of economics at Catholic University, said, “It is good in that it brings people who are left behind to the same position, but the policy promoted by the government has more side effects as a result.” “Representatively, the minimum wage is expected to reduce the gap between the rich and the poor. That’s right, but it has a counter-effect of reducing low-wage jobs.” Professor Sung Tae-yoon of the Yonsei University Department of Economics said, “The Moon Jae-in administration is highly valued for the tendency to consider the marginalized and difficult class more.” “

Reporter Sejong and Lim Joo-hyung [email protected]
Reporter Sejong Na Sang-hyun [email protected]